CHAPTER – II CONCEPTS AND REVIEW OF LITERATURE

This chapter deals with several important concepts related literature and

theoretical information which have been formulated for the support of the study.

Technology has become the engine for triggering rapid change. It is no

longer considered merely for transaction processing or confined to management

information systems. It implies the integration of information system with the

communication technology and of innovative application to product

manufacturing, design and control. With the development of technology, the

world has become a global village and ushered in a revolution in the banking

industry. R.C.Dangwal, Kailash Sakalani and Swate Anand, 2010.1 “As per the statistics, India has experienced a high growth rate in the last

four years, the consumers’ spending has claimed up to 75 % as a result the

Banking Industry is expected to grow further in the future days.

(Radhakrishnan, 2008)2

Van Hoeck, (2001)3.With cyber cafes and kiosks springing up in different

cities access to the Net is going to be easy. Internet banking (also referred as e

banking) is the latest in this series of technological wonders in the recent past

involving use of Internet for delivery of banking products & services. E-business

has been continuously growing as a new industry during the last decade

In the wake of the internet revolution, electronic commerce emerged and

allowed businesses to interact more effectively with their customers and other

corporations. In this proliferated information age, banking industry has been

using this new communication channel to reach its varieties of customers.

1 Dangwal.R.C., Kailash Sakalani and Swate Anand,the upcoming Technology and the associated innovations,by Pg.26, Professional banker. January 2010. The Icfai University Press. 2 Radhakrishnan, “ Organization retailing in India” Praxix- Business line, January 2008, pp 44-49 3 Van Hoeck, R. (2001) ‘E-supply chains – virtually non-existing’, Supply Chain Management: An International Journal, Vol. 6, No. 1, pp.21–28.

12

Electronic commerce (e-commerce) has become a very important technological

advancement for businesses by changing business practices. Brodie et al (2007).4 Internet banking is changing the banking industry and is having the

major effects on banking relationships. Banking is now no longer confined to the

branches were one has to approach the branch in person, to withdraw cash or

deposit a cheque or request a statement of accounts. E-banking technologies

have proliferated in recent years, and the availability of a wide range of products

has led to increasing adoption among consumers. These technologies include

direct deposit, computer banking, stored value cards, and debit cards Servon and Kaestner, (2008).5 The terms ‘PC banking’, ‘online banking’, ‘internet

banking’, ‘telephone banking’ or ‘mobile banking’ refer to a number of ways in

which customers can access their banks without having to be physically present

at the bank branch. E-banking may be understood as a term that covers all these

ways of banking business electronically Leow and Bee, (1999)6

Today banks have centralized operations and are increasingly moving

towards core banking solutions network-based computing, new delivery

channels, such as networked ATMs, internet banking, smartcards based

products etc. Filomina P.George, Dr.S.Mercia Selva Malar, Mr. Sudheendran M. 20097. Internet banking (IB) is a radical technological innovation with potential

to change the structure and nature of banking. To sustain business

competitiveness, more and more banks are transforming from their traditional

4 Brodie RJ, Winklhofer H, Coviello NE. Johnston WJ (2007). “Is emarketing coming of age? An examination of the penetration of emarketing and firm performance”, J. Interactive Markt., 21 (1): 2-21 5 Servon, L.J. and Kaestner, R. (2008) ‘Consumer financial literacy and the impact of online banking on the financial behavior of lower-income bank customers’, Journal of Consumer Affairs, Vol. 42, No. 2, pp.271–305. 6 Leow, H. and Bee, H. (1999) ‘New distribution channels in banking services’, Bankers Journal Malaysia, Vol. 5, No. 1, pp.45–56. 7 Filomina P.George, Dr.S.Mercia selva malar, M.Sudheendran, Technology enhanced service –scape commercial banks in India, Pg.39, August 2009, professional banker. The Icfai University press.]

13

approach of “bricks and mortar” into a “clicks and mortar” one under the recent

emergence of electronic commerce and business. Chau, P & Lai.V, 20038. A.Subbiah & S Jeyakumar 20089 Core banking is a newly developed

concept adopted by banks. In future, the smooth functioning of banks will

depend on the pace of technological up- gradation. The Indian banking system is

one of the largest, if not the largest, in the world today. The branch network is

extensive and these branches are now spread out into the remote corners of our

country. Information technology has immense potential for widespread branch

banking. The benefits of core banking are reduced transaction costs, increased

customer satisfaction, rapid implementation of e-banking services, management

of ever-increasing transaction volume and better security.

The customer is directly benefited by way of happy banking experience.

Core banking is a new trend which has increased the speed of banking

transactions. Rapid improvement in technology, faster communication facilities

and availability of high computer power, net banking and core banking has

resulted in a revolution in the banking industry world -wide. Miranda-Petronella,(2009)10 E-banking is the first of those banking

services that really economize time, because it allows to the user to accomplish

from behind the computer many operations in the bank account, represents the

computational solution that allows to the holder to have access at distance at the

capitals from his account, purposing to obtain information about his account

situation and the situation of the effected operations, of the payment and of the

capitals transfers over a beneficiary, by a computational application, of a

authentication method and of a communicational average, the e-banking is

8 Chau, P & Lai, V., “An Empirical Investigation of the Determinants of User Acceptance of Internet Banking,”Journal of Organizational Computing and Electronic Commerce, vol. 13, no. 2, pp. 123-145, 2003. 9 A Subbiah & S Jeyakumar Customer Service in Commercial Banks in India : A Study with Reference to Core Banking OCT-dec 2008,vol.xxix,no.3 Vinimaya archives. 10 Miranda-Petronella, E-banking-Modern Banking Services, Economic Science Series, 2009, Vol. 18 Issue 4, p1093-1096.

14

absolutely necessary in the integration conditions. Technology enhances

Commercial Bank’s ability to deliver financial services in new and innovative

ways.

One Can View

Own accounts and related ones

Credit and Debit cards

Fund’s Time deposit, Savings certificates

Loans

Treasury bond

Latest transactions of current month

View, print and save monthly statements (since year 2004)

One canTransfer

Between accounts

To another account (Digital signature required)

To credit card

To another credit card (Digital Signature required)

To any charity

One can Request

Cheque book

To change the mailing address

To inquire or complain,

To add related account (Power of attorney, parent/child or account with

different customer number)

To manage supplementary cards,

To dispute credit card,

To make External transfer (Digital signature required )& Digital Signature

registration

15

Also, one can

Stop credit card

Subscribe in Alerts service (SMS /E mail)

Consumers are attracted to these technologies because of convenience,

increasing ease of use, and some instances cost saving Anguelov et al.(2004)11. All business, including small and medium scale industries, no matter

their geographical locations, are all beneficiaries of e-banking. It encompasses

all kinds of commercial transaction that is conducted on an electronic medium,

mostly through the internet.

E-banking links business to customers no matter their geographical

location. It allows companies to make new business contacts from different

global business alliances, test new products and services, and make market

research and other enquiries all at a minimum cost both financial and otherwise

(Shin, 2008).12

In contrast to traditional banking, internet banking involves non-human

interactions between customers and online bank information system.

Customer satisfaction, customer retention and new customer acquisition

are the key factors in i-banking system. This becomes more important since the

acquisition costs in online banking exceed that of traditional off line business by

20%-40% (Reibstein, 2002)13. The i-banking, thus now is more of a norm rather

than an exception in many developed countries due to the fact that it is the

cheapest way of providing banking services (Arunachalam and Sivasubramanian, 2007)14 business, including small and medium scale

11 Anguelov, C.E., Marianne, A.H. and Hogarth, J.M. (2004) ‘U.S. consumers and electronic banking:1995–2003’, Federal Reserve Bulletin, Vol. 90, Winter, pp.1–18. 12 Shin, K.H. (2008) A causal analysis’, Internet journal for Electronic Finance, Vol. 2, No. 2, pp.180–196. 13 Reibstein, D.J. (2002) ‘What attracts customers to online stores, and what keeps them coming back?’, Journal of the Academy of Marketing Science, Vol. 30, pp.465–473. 14 Arunachalam, L. and Sivasubramanian, M. (2007) ‘The future of Internet Banking in India’,Academic Open Internet Journal, Vol. 20.

16

industries, no matter their geographical locations, are all beneficiaries of e-

banking. It encompasses all kinds of commercial transaction that is conducted

on an electronic medium, mostly through the internet.

Cristina, Beatrice, (2008),15 The evolution of electronic banking(e-

banking) started with the use of automatic teller machines (ATMs) and has

included telephone banking, direct bill payment, electronic fund transfer and

online banking.

ELECTRONIC BANKING(E-BANKING) E-banking or electronic banking refers to conducting banking activities

with the help of information technology and computers. E-banking is a mix of

services which include Internet banking, Mobile banking, ATM kiosks, Fund

Transfer System, Real Time Gross Settlement (payment & settlement system),

Credit/Debit/Smart/Kisan Cards, Cash management services, and Data

warehousing, Operational data for MIS and Customer Relationship

Management. Latest innovations in technology like broadband transmission,

internet access via mobiles and WebTV will further provide impetus to digital

revolution. Banks are scanning the image of a cheque which can be zapped to

another bank, into the depository and back to customer's bank. Banking

transactions can be carried out 24 hours a day using these methods. In fact

concept of Anytime, Anywhere banking is making it easy for customers to access

their money more conveniently.

INTERNET BANKING SERVICES Internet banking refers to systems that enable bank customers to get

access to their accounts and general information on bank products and services

through the use of bank’s website, without the intervention or inconvenience

15 Cristina, Titrade; Beatrice, E-Banking-Impact, Risks, Security, Economic Science Series, 2008, Vol. 17 Issue 4, p1537-1542

17

ANYWHERE BANKING With expansion of technology, it is new possible to obtain financial details

from the bank from remote locations. Withdrawals from other stations have been

possible due to inter- station connectivity of ATM. The Rangarajan committee

had also suggested the in station of ATM at non- branch location, Airports,

Hotels, Railway stations, office computers, Remote banking is being further

extended to the customer's office and home. Internet banking is a new delivery

channel for banks in India. The i-banking channel is both an informative and a

transactional medium. However, i-banking has not been popularly adopted in

India as expected (Ravi et al., 2007)16. E-banking has been around for some

time in the form of automated teller machine and telephone transactions. More

recently, it has been transformed by the internet – a new delivery channel that is

fast, convenient, available round the clock, and from whatever the customer’s

location (Saleh and Andrea, 2002)17. Electronic distribution channels provide

alternatives for faster delivery of banking services to a wider range of customers

(Kaleem and Ahmad, 2008)18. Most of the consumers who start banking online

do it because they need to pay bills frequently and would like to do it with

minimum effort. Besides that, people use the internet banking to keep an eye on

their money matters, view their account balance and check receiving payments

from other parties Kolodinsky, J.M., Hogarth, J.M. and Hilgert, M.A. (2004)19. In addition to previous e-banking delivery systems, Automated Teller Machines

(ATMs) and telephone transaction processing centres, online banking provides

banks a new and more efficient electronic delivery tool (Costanzo, 2000)20.

16 Ravi, V., Mahil, C. and Vidya Sagar, N. (2007) ‘Profiling of internet banking users in india using intelligent techniques’, Journal of Services Research, Vol. 6, No. 2 (October 2006–March 2007), pp.61–73. 17 saleh and Anderea 2002 challenges of the e-banking revolution, a quarterly magazine of international monetory fund (IMF), vol. 39,no.3,pp 34-56. 18 Kaleem, A & Ahmad, S., “Bankers’ Perceptions of Electronic Banking in Pakistan,” Journal of Internet Banking and Commerce, vol. 13, no. 1. 2008 pp 23-36 19 Kolodinsky, J.M., Hogarth, J.M. and Hilgert, M.A. (2004) ‘The adoption of electronic banking technologies by US consumers’, International Journal of Bank Marketing, Vol. 22, No. 4, pp.233–241 20 Costanzo, C. (2000) ‘Pioneer internet-only bank has a new strategy’, American Banker, Vol. 165, No. 19, pp.1–2.

18

AUTOMATED TELLER MACHINES (ATMS) The cash machine or automated teller machine (ATM) are self service

vendor machine that help the banks to provide round the clock banking services

to their customers at convenient places without visiting to the bank premises.

They enable the banks to transact more business by offering various services in

cost effective way on one side and to get more customer satisfaction on the

other. To avail the ATM services customers are provided with ATM card, which is

a small plastic card with magnetic strip, containing information about the name of

bank, name of the customer, card number, validity period and signature panel.

The magnetic strip contains information about the customer which enables the

banks to verify the identity when the card is inserted at the slot provided in ATM.

The following functions can be performed on ATM.

The use of paper cheques has been supplemented step-by-step with e-

cheques (i.e., electronic images) allowing banks to have more storage capacity,

reduce costs, and improve customer services (Rose and Hudgins, 2005)21.

Banks have traditionally been in the forefront of harnessing technology to

improve their products and services. They have over the time been using

electronic and telecommunication networks for delivering a wide range of value

added products and services. The range of services and products offered by

different banks vary widely both in their contents and sophistication. E-banking

provides enormous benefits to consumers in terms of the ease and cost of

transactions Luis V. Casaló, Carlos Flavián, Miguel Guinalíu, (2008)22.

The relationship between digital capital of internet banking However, it can

be thought of as a service that allows customers to use some types of computers

to access account-specific information and possibly conduct transactions from a

remote location – such as at home or at the workplace (Saleh and Andrea,

21 Rose, P.S. and Hudgins, S.C. (2005) Bank Management and Financial Services, New York: McGraw-Hill Irwin. 22 Luis V. Casaló, Carlos Flavián, Miguel Guinalíu, (2008) "The role of satisfaction and website usability in developing customer loyalty and positive word-of-mouth in the e-banking services", International Journal of Bank Marketing, Vol. 26 Iss: 6, pp.399 - 417

19

2002)23.The customer can never overspend because the system rejects any

transaction which exceeds the balance in his account. The bank never faces a

default because the amount spent is debited immediately from the customer’s

account.

Rajesh Kumar Srivastava (2007)24 The growth in e-banking with the

increase in the range of interface options available to access online banking

solutions has resulted in a steady increase in the number of customers

interacting through remote channels to a greater extent than before. In a climate

of increasing online competition, banks that have chosen to retain extensive

branch networks are re-aligning the roles of staff in these branches and moving

towards a relationship-driven sales culture (Durkin, 2007)25. E-banking also can

increase competition among banks, and allows banks to penetrate new markets

and thus expand their geographical reach. Some even see e-banking as an

opportunity for countries with underdeveloped financial systems to leapfrog into

advanced stages. Customer in such countries can access services more easily

from banks outside one’s own country through wireless communication systems,

which are developing more rapidly than traditional ‘wired’ communication

networks (Gao and Owolabi, 2008)26.

In contrast to traditional banking, i-banking involves non-human

interactions between customers and online bank information system. Customer

satisfaction, customer retention and new customer acquisition are the key factors

in i-banking system. This becomes more important since the acquisition costs in

online banking exceed that of traditional offline business by 20%–40%

(Reibstein, 2002)27.

23 Saleh, M.N. and Andrea, S. (2002) ‘Challenges of the “e-banking revolution”, A Quarterly Magazine of International Monetary Fund (IMF), Vol. 39, No. 3, pp.34–56 24 Rajesh Kumar Srivastava (India), Innovative Marketing, Volume 3, Issue 4, 2007 25 Durkin, M. (2007) ‘On the role of bank staff in online customer purchase’, Marketing Intelligence & Planning Journal, Vol. 25, No. 1, pp.82–97. ) 26 Gao, P. and Owolabi, O. (2008) ‘Consumer adoption of internet banking in Nigeria’, Int. J. Electronic Finance, Vol. 2, No. 3, pp.284–299 27 Reibstein, D.J. (2002) ‘What attracts customers to online stores, and what keeps them coming back?’, Journal of the Academy of Marketing Science, Vol. 30, pp.465–473.

20

CREDIT CARDS/DEBIT CARDS Credit Card is a post paid card. The Credit Card holder is empowered to

spend wherever and whenever he wants with his Credit Card within the limits

fixed by his bank. Debit Card, on the other hand, is a prepaid card with some

stored value. Every time a person uses this card, the Internet Banking house

gets money transferred to its account from the bank of the buyer. The buyers

account is debited with the exact amount of purchases. An individual has to open

an account with the issuing bank which gives debit card with a Personal

Identification Number (PIN). When he makes a purchase, he enters his PIN on

shops PIN pad. When the card is slurped through the electronic terminal, it dials

the acquiring bank system - either Master Card or VISA that validates the PIN

and finds out from the issuing bank whether to accept or decline the transactions.

The customer can never overspend because the system rejects any transaction

which exceeds the balance in his account. The bank never faces a default

because the amount spent is debited immediately from the customers’ account.

MOBILE BANKING

Mobile banking (also known as M-Banking, m-banking, SMS Banking etc.)

is a term used for performing balance checks, account transactions, payments

etc. via a mobile device such as a mobile phone.. Mobile banking is a way for

the customer to perform banking actions on his or her cell phone or other mobile

device. It is a quite popular method of banking that fits in well with a busy,

technologically oriented lifestyle. It might also be referred to as M-banking or

SMS banking. The amount of banking you are able to do on your cell phone

varies depending on the banking institution you use. Some banks offer only the

option of text alerts, which are messages sent to your cell phone that alert you to

activity on your account such as deposits, withdrawals, and ATM or credit card

use. With the combination of two most recent technological advancements–

internet and mobile phone, a new service (mobile data service) is thus enabled

and the first such wireless internet commercial transaction is performed by the

21

banking industry (Barnes and Corbitt, 2003)28. It is believed that m-banking will

provide another new channel for banking services, especially for certain remote

areas where online internet is still unavailable. Strategic implications and

customer perception of m-banking services are explored (Laukkanen and Lauronen, 2005)29 with a focus on the consumer value creation and a better

understanding about the customer-perceived value of m-banking services.

From the bank viewpoint, adoption of Internet banking will lead to cost

reduction and improved competitiveness. This service delivery channel is seen

as powerful because it can retain current Internet-based customers who continue

using banking services from any location. Moreover, the electronic service

channel can also provide efficient services to customers via the mobile

technology Prendergast G, and Marr N. (1994).30

Donell (2003)31 viewed electronic banking as banking services that

consumers can access, by using Network system or an Internet connection to a

bank’s computer center, in order to perform banking tasks, receive and pay bills,

and so forth. Many other financial services can be accessed via the Internet. To

most people, electronic banking means 24-hour access to cash through an ATM

or paychecks deposited directly into checking or savings accounts (Hillier, 2002).32

Diniz et al. (2005)33 propose and test a model of three dimensions to

evaluate virtual business environments from the user's point of view:

28 Barnes, S.J. and Corbitt, B. (2003), International journal of Mobile communications, Vol. 1, No. 3, pp.273–288. 29 Laukkanen, T. and Lauronen, J. (2005) ‘Consumer value creation in mobile banking services’, Int. J. Mobile Communications, Vol. 3, No. 4, pp.325–338. 30 Prendergast G. and Marr N. (1994), “The Future of Self-Service Technologies in Retail Banking”, The Service Industries Journal, 14(1), 94-114 31 Donnell Yuks K. (2003), New System of banking; Drawill Publications, New York. 2003, Pg, 24-25. 32 Hillier, D. (2002). Money Transmission and the Payments Market, Financial World Publishing. 33 Diniz, E., Porto R.M., Adachi T. (2005), IB in Brazil: Evaluation of functionality, security and usability, The Electronic Journal of Information Systems Evaluation 8 (1), pp. 41-50.

22

functionality, security and usability. They select three banks in Brazil for IB

services testing on the model’s dimensions

Diniz(1998)34 in his view states that Electronic banking encompasses a

broad range of established and emerging technologies. Some are ‘‘front end’’

products and services that consumers opt for, such as ATM cards and computer

banking; others are ‘‘back end’’ technologies used by financial institutions,

merchants, and other service providers to process transactions, such as

electronic check conversion. Some are tied to a consumer bank account; others

are unrelated to a bank account but instead store monetary value in a database

or directly on a card. It is the types of services through which bank customers

can request information and carry out most retail banking services such as

balance reporting, inter-account transfers, bill-payment, etc., via

telecommunication network without leaving their home /organization. Amin.H. 2007.35 Arasli, H., Mehtap-Smadi, S. and Katircioglu, S. T. (2005)36 Banks have

realized that in order to remain competitive, they need to restructure their

services to make use of rapid technology as well as to offer diverse service

portfolio.

E-banking has emerged as a significant and rapidly growing component of

the world economic exchange. Through e-banking the world economic exchange

has been reduced to a tiny global village in terms of its information capacity and

the resources it holds which can be accessed by anybody from anywhere in the

globe (Hwang et al., 2007).37

34 Diniz, E. (1998), Web banking in USA, Journal of Internet Banking and Commerce, vol. 3 (2), 35 Amin, H., “Internet Banking Adoption among Young Intellectuals,” Journal of Internet Banking and Commerce, vol. 12, no. 3. 2007. 36 Arasli, H., Mehtap-Smadi, S. and Katircioglu, S. T. (2005), “Customer service quality in the Greek Cypriot banking industry”, Managing Service Quality, Vol. 15(1), p.41-56. 37 Hsin-Ginn Hwang, Rai-Fu Chen, Jia-Min Lee, Measuring customer satisfaction with internet banking: an exploratory study, International Journal of Electronic Finance, Vol.1, Number 3/2007, PP 321-335

23

Providing i-banking is increasingly becoming a ‘need to have’ than a ‘nice

to have’ (M.S. Khan, S.S. Mahapatra and Sreekumar, 2009)38 service.

The i-banking, thus, now is more of a norm rather than an exception in

many developed countries due to the fact that it is the cheapest way of providing

banking services (Arunachalam and Sivasubramanian, 2007)39. Internet

banking is a new delivery channel for banks in India. The i-banking channel is

both an informative and a transactional medium. However, i-banking has not

been popularly adopted in India as expected (Ravi et al., 2007)40.

CUSTOMER SATISFACTION Customer satisfaction is a critical issue in the success of any business

system, traditional or online. In a turbulent commercial environment in order to

sustain the growth and market share, customer satisfaction is critical for

establishing long term client relationship. (Peterson R.A. and et. al.(1997).41

SERVICE QUALITY DIMENSIONS In the view of changing scenario, the service quality dimensions have

become vital. However among all, responsibility, reliability, easy use,

accessibility, security, efficiency have vital bearing on the success of the e-

banking. The research is the common method of measuring service quality.

Service quality can thus be defined as the difference between customer

expectation of service and the customer experience. If the expectations are

38 Khan, M.S., Mahapatra, S.S. and Sreekumar (2009) ‘Service quality evaluation in internet banking: an empirical study in India’, Int. J. Indian Culture and Business Management, Vol. 2, No. 1, pp.30–46. 39 Arunachalam, L. and Sivasubramanian, M. (2007) ‘The future of Internet Banking in India’,Academic Open Internet Journal, Vol. 20. Available online at: www.acadjournal.com 40 Ravi, V., Mahil, C. and Vidya Sagar, N. (2007) ‘Profiling of internet banking users in india using intelligent techniques’, Journal of Services Research, Vol. 6, No. 2 (October 2006–March 2007), pp.61–73 41 Peterson R.A. and et.al., “ Exploring the implication of the internet for consumer marketing”, Journal of the Academy Marketing Science, 1997, vol 25,no.4,pp 329-346.

24

greater than performance, then the perceived quality is less than the satisfaction

level and hence customer dissatisfaction occurs. (Olorurnnirvo F)42 Service differentiation is necessary for the growth and development of

service businesses. (Thomas, Dan R.E.,1978)43. Today, the Internet has been

believed to become a full-fledged delivery and distribution channel supporting for

consumer-oriented applications aimed at effectively and efficiently providing

financial products and services to customers in the banking sector (Pham, 2010)44.

Additionally, internet banking offers the option to provide economic and

convenient services without reducing the quality of services offered to customers

(Akinci et al., 2004)45. Service quality is one of the main factors determining the

success/failure of electronic commerce. Therefore, customer perception and

preferences of service quality have a significant impact on bank’s success. E-

banking does not only encompass the way one shops over the internet, but also

the ways one carries out banking transactions. This allowed customers, more

independence in the choice on where and when to bank. It is an obligation for

banks to apply better strict security levels due to the many kinds of threats that

are recently identified with these alternative channels (Smith, 2006)46.

Abha Chandra, Mrs.Vinitha Sharma,(2010)47 Privacy preserved

e-society consists of three intangible factors firstly applications, which have data

to share with authorized clients; secondly clients who want data that contains in

42 Olorurnniro F., “ Service Quality. Customer satisfaction and behavioural interntions in the service factory., Journal of Service Marketing, vol.20, issue, pp 59-72. 43 Thomas, Dan R.E., Strategy is different in Service Business, Harvard Business Review, 1978,vol,56, issue 4, pp 158-165. 44 Pham, L. 2010. A conceptual framework for e-banking service quality in Vietnam. of Accepted to be published in The Business Studies Journal 45 Akinci, S., Aksoy, S. and Atilgan E. (2004), “Adoption of Internet banking among sophisticated consumer segments in an advanced developing country”, The International Journal of Bank Marketing, Vol. 22(3), p.212-232 46 Smith, A.D. (2006) ‘Exploring security and comfort issues associated with online banking’, Int. J. Electronic Finance, Vol. 1, No. 1, pp.5–17. 47 Abha Chandra Mrs.Vinita Sharma, Analytical Research on Indian Online Banking and Users’ Privacy January 2010 - Volume-2, Issue 2

25

the applications and finally the privacy control factor which is required to maintain

records about the purposes. People now a day are more concerned about their

personal information, which is supposed to be leaked out from the organizations

to which they are trading online.

There are many types of banks in India, which provide net banking or

online banking service to the consumers through Internet. The significant point to

be noted with respect to these banks is to make their personal and financial

information totally secure so that no unauthorized person or organization should

acquire their data to mistreat over the Internet. An empirical study is conducted to

evaluate the existence and format of privacy policies of different banks of India in

conducting online banking through their websites.

Abhav Jain B S Hundal, 200648 Rapid changes in the financial services

environment- increased competition by new players, product innovations,

globalization and technological advancement— have led to a market situation

where battle for customers has become intense. In order to rise up to the

challenges, service providers are even more interested to enhance their

understanding of consumer behavior patterns. This paper examines the forces

that can act as barriers in mobile banking service adoption. A quantitative survey

sheds more light on this research issue. The data was collected from a survey in

the Northern region of India and includes 330 respondents.

E. AbuShanab, J.M. Pearson,(2007)49 The purpose is to investigate the

key determinants of the adoption of internet banking in Jordan. The paper also

attempts to validate the appropriateness of the Unified Theory of Acceptance and

Use of Technology (UTAUT) within the context of internet banking. The results of

this study indicate that UTAUT provides a good foundation for future technology

acceptance research. The three main predictors relevant to this study 48 Abhay Jain B S Hundal Barriers In Mobile Banking Adoption In India. The IUP journal of Bank Management, August,2006, issue 3, pg 64-73 49 E. AbuShanab, J.M. Pearson, (2007) "Internet banking in Jordan: The unified theory of acceptance and use of technology (UTAUT) perspective", Journal of Systems and Information Technology, Vol. 9 Iss: 1, pp.78 – 97

26

(performance expectancy, effort expectancy, and social influence) were

significant and explained a significant amount of the variance in predicting a

customer's intention to adopt internet banking. The results also indicate that

gender moderated the relationships between the three independent variables

and the dependent variable (behavioral intention).

Adelowo Solomon Adepoju Mohammed Enagi Alhassan201050 Over

time, consumers have come to depend on and trust the Automatic Teller

Machine (ATM) to conveniently meet their banking needs. But in recent time

there have been a proliferation of ATM frauds in the country even and across the

globe. Managing the risk associated with ATM fraud as well as diminishing its

impact is an important issue that face financial institutions as fraud techniques

have become more advanced with increased occurrences. The ATM is only one

of many Electronic Funds Transfer (EFT) devices that are vulnerable to fraud

attacks. This paper carried out an empirical research to analyze the cases of

ATM usage and fraud occurrences within some banks in Minna. The research

identifies the common ATM fraud, how, where and when these frauds are

perpetuated and then proffer security recommendation that should be adhered to

by both the banks as financial institutions and the ATM users in order to eliminate

or reduce it to the barest minimum.

Agarwal.N. Agarwal. R., Sharma, P. and Sherry, A. M. (2003)51

explored the role of e-banking in e-democracy. With the development of

asynchronous technologies and secured electronic transaction technologies,

more banks and departments were using Internet for transactional and

information medium. Initiatives such as E-SEVA and FSC’s are the milestones

towards achieving comprehensive e-governance.

50 Adelowo Solomon Adepoju Mohammed Enagi AlhassanChallenges of Automated Teller Machine (ATM) Usage and Fraud Occurrences in Nigeria – A Case Study of Selected Banks in Minna Metropolis Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2) 51 Agarwal, N., Agarwal, R., Sharma, P. and Sherry, A. M. (2003), “Ebanking for comprehensive EDemocracy: An Indian Discernment,” Journal of Internet Banking and Commerce, Vol. 8, No. 1, June.

27

Ahmad Zakaria Siam,(2006)52 This study aims at examining the effects of

electronic banking on bank’s profitability in Jordan. How banking sector finds

itself before a new fact imposed by technology revolution and digits to change

their work mechanisms from traditional means to electronic means and the

challenges banks face as a result. Furthermore, this study investigates the

reasons behinds providing electronic banking services through internet, their

impact on banking services in general and banks profitability in particular. Risks

and challenges involved are discussed The importance of this study and the

factors that make it unique is that, it discusses solely the topic of the effects of

electronic banking on banks profitability, while most of other studies discuss the

topic in general term. The findings of the study are the impact of electronic

banking on banks profitability will be feature of the short run due to the capital

investment by the banks on infrastructure and training but will be positive on the

long run.

Ahmed Audu, Sany Sanuri Mohd. (2010)53 This paper aims at

investigating the relationship between the electronic banking facilities, customers

employment sector and customers age group choice of banks. The results show

that there is no significant relationship between electronic banking facilities and

customers’ choice of banks. It was however found that there is significant

relationship between customers’ employment sector and customers’ age-group

on one hand and their choice of banks on the other hand. It was recommended

that the management of Nigerian commercial banks should find the relevant

factors that are considered important by customers of various age group to

appropriately segmenting the target market.

52 Ahmad Zakaria Siam, Role of the Electronic Banking Services on the Profits of Jordanian Banks, American Journal of Applied Sciences 3 (9): 1999-2004, 2006 53 Ahmed Audu, Sany Sanuri Mohd., Effects of Electronic Banking Facilities, Employment Sector and Age-Group on Customers’ Choice of Banks in Nigeria Journal of Internet Banking and Commerce, April 2010, vol. 15, no.1

28

Akhil Sahai, Vijay Machiraju, (2001)54 The World Wide Web has

unleashed people’s imagination and a plethora of new technologies have

emerged. Since these technologies have sprung up to address different

requirement, it has become imperative to understand how these different

technologies fit together. This paper presents the state of the art of these

different technologies and tries to present a coherent vision of their inter-

operation. In the current scenario Indian customers are moving towards internet

banking, slowly but steadily. Most of the big Indian banks like SBI, BOB and BOI

etc., have stated providing internet banking services.

Akinyele .S.T. and K.Olorunleke (2010)55 technology based self service

has greatly changed the way that service firms and customers interact and are

raising a host of research and practice issues relating to the delivery of e-service

which has become increasingly important not only in determining the success or

failure of electronic commerce but also in providing customers with superior

experience with respect to the interactive flow of information. The purpose of the

research study was to establish the relationship between technology and service

quality in the banking industry in Nigeria. The finding revealed that secure

services as the most important dimension, followed by convenient location of

ATM, efficiency.

Alain Yee-Loong Chong, Keng-Boon Ooi, Binshan Lin, Boon-In Tan,(2010)56 aim to empirically examine the factors that affect the adoption of

online banking in Vietnam. Perceived usefulness, perceived ease of use, trust

and government support were examined to determine if these factors are

affecting online banking adoption.

54 Akhil Sahai, Vijay Machiraju, 2001, “Enabling of the Ubiquitous e-service vision on the internet”, e-Service Journal 1.1 (2001) 5-19 55 S.T.Akinyele and K.Olorunleke,2010, Technology and Service Quality in the Banking Industry: An Empirical Study of Various Factors in Electronic Banking Services., International business management vol.4, issue 4, pg, 209-221,2010 56 Alain Yee-Loong Chong, Keng-Boon Ooi, Binshan Lin, Boon-In Tan, “Online banking adoption; An empirical analysis”. International Journal of Bank Marketing, vol.28, issue 4.,2010

29

Ali Sanayei ,Ali Noroozi, (2009)57 Nowadays technology is growing fast

and always adds new dimensions to our daily lives. In this way, Internet banking

systems allow users to manage financial affairs such as checking account

balances and transferring money between accounts as fast and easy as it can

be. This study is done in Iran and Malaysia, the basic structure in Malaysia

causes more concern, as well as use of this new way of banking..

Al Nahian Riyadh, Md. Shahriar Akter, Nayeema Islam (2009)58

Electronic banking offers numerous benefits to SMEs. SMEs can check account

balances, transfer money, pay bills, collect receivables and ultimately reduce

transaction costs and establish greater control over bank accounts. Despite the

benefits of e-banking to SMEs, there has been little research done on the factors

affecting its adoption. This research aims to investigate the factors that affect

SMEs’ adoption of e-banking in Bangladesh. It is well documented in the

literature that despite their availability and potential benefits, SMEs in

Bangladesh are slow in adopting e-banking services. For the purpose of

identifying factors affecting the adoption of e-banking by SMEs, TOE framework,

Technology Acceptance Model (TAM), Institutional Theory and Institutional

Intervention Theory are used. Drawing upon these as background theories, an

integrated conceptual framework for SMEs’ e-banking adoption is developed,

which incorporates both the rationalistic goal oriented behaviour of firms and the

external forces of technology adoption. Seven variables affecting e-banking

adoption by SMEs are identified. They are: organizational capabilities, perceived

benefits, perceived credibility, perceived regulatory support, ICT industries

readiness, lack of financial institutions readiness and institutional influence. This

model can be tested empirically for SMEs in Bangladesh as well as in other

developing countries.

57 Ali Sanayei, Ali Noroozi, "Security of Internet Banking Services and its Linkage with Users' Trust: A Case Study of Parsian Bank of Iran and CIMB Bank of Malaysia," icime, pp.3-7, 2009 International Conference on Information Management and Engineering, 200 58 Al Nahian Riyadh, Md. Shahriar Akter, Nayeema Islam The Adoption of E-banking in Developing Countries: A Theoretical Model for SMEs International Review of Business Vol. 5 No. 6 November 2009, Pp.212-230

30

Ali and Akter (2010)59 argued that a transitional period in the banking

sector of Bangladesh has been passing through since shifting from the traditional

banking system to the online banking system. These comments indicate that

gradually electronic banking is gaining its importance in Bangladesh. Customers

liking is necessary for the banking sector to elevate profitability, business

expansion and accomplishment. Now-a-day’s banking sector is modernizing and

expanding its hand in different financial events every day. At the same time the

banking process is becoming faster and easier. In order to survive in the

competitive field of the banking sector commercial banks are looking for better

service opportunities to provide their customer. The paper has been undertaken

mainly to find out whether e-banking can satisfy the customers or not.

Awamleh et.al. (2003)60 survey Jordanian banks and find limited evidence

of web usage at the intermediate level while the basic level use is dominant.

They also find the banks in Jordan are not fully utilizing concepts and

applications of web banking.

Abasanul Haque, Ahmad Zaki Hi Ismail, Abu Hayat Daraz,61 This study

investigated the determinant factors of consumers’ perception on E-banking

transaction in Internet banking by Malaysian bank consumers. The research

framework was developed to testify the statistical relationships between

consumer perceptions and E-banking transaction. Factor analysis was performed

to extraction and make initial decision on the number of factors underlying asset

of measured variables of interest. Thereafter, multiple regression was estimated

to anticipate the effects of the explanatory variables. This study offers an insight

into E-banking in Malaysia, which has not been previously been investigated and 59 Ali, Muhammad Mahboob, Akter, Nargis, (2010)14(a), “E-Business with special reference to on line banking of Bangladesh : An Analysis”, paper presented at the 17th Biennial Conference on “The economy at the golden Jubilee of war of liberation: What type of Bangladesh we would like to see?” organized by Bangladesh Economics Association held on 8-10 February at Osmani Memorial Auditorium and Institution of Engineers ,Bangladesh, Dhaka. 60 Awamleh R., Evans J., Mahate A. (2003), IB in emergency markets the case of Jordon - A note, Journal of IB and Commerce 8 (1). 61 Abasanul Haque, Ahmad Zaki Hi Ismail, Abu Hayat Daraz, Issues of E-Banking Transaction: An empirical investigation on Malaysian customers perception, journal of Applied Sciences, vol.9, issue 10, pg 1870-1879

31

much statistical significance makes this study a potential cornerstone for future

research.

Amy wong, Amrik Sohal (2003)62 examined in their study that the

relationship between the dimensions of service quality and customer loyalty in a

retail chain departmental store selling in Victoria, Australia. The results showed

that service quality is positively associated with customer loyalty and that the

most significant predictor of customer loyalty in the city retail district is empathy,

while the most significant predictor of customer loyalty is the country retail district

is tangibles

Anne J. Broderick, Supattra Vachirapornpuk, (2002)63 One of the key

challenges of the Internet as a service delivery channel is how service firms can

manage service quality as these remote formats bring significant change in

customer interaction and behaviour. Drawing on theoretical frameworks of

service quality and adapting these to particularly reflect the remote delivery

format of the Internet, this study proposes and tests a service quality model of

Internet banking. The research uses participant observation and narrative

analysis of a UK Internet banking Web site community to explore how Internet

banking customers perceive and interpret the elements of the model. Findings

show that the level and nature of customer participation had the greatest impact

on the quality of the service experience and issues such as customers’ zone of

tolerance.

Awamleh and Fernandes (2005)64 adopt the model to analyze the

content of bank websites in the United Arab Emirates (UAE). The results reveal

that IB in the UAE is still in its infancy. In their study it is also concerned with

factors that impact the satisfaction of IB users. They find that security of 62 Amy Wong, Amrik Sohal, “Assessing customer sales person interactions in a retail chain”. Difference between City and Country retail districts, Marketing Intelligence and Planning, 2003, vol . 21, issue 5, pp 292-304. 63 Anne J. Broderick, Supattra Vachirapornpuk, (2002) "Service quality in Internet banking: the importance of customer role", Marketing Intelligence & Planning, Vol. 20 Iss: 6, pp.327 – 335 64 Awamleh R., Evans J., Mahate A. (2003), IB in emergency markets the case of Jordon - A note, Journal of IB and Commerce 8 (1)

32

transactions and conveniences contribute significantly to satisfaction of IB

customers.

Anita Lifen Zhao, Nicole Koenig-Lewis, Stuart Hanmer-Lloyd, Philippa Ward, (2010)65 aim to contribute to this field by looking simultaneously

at the roles of trust and perceived risk on consumers' IBS usage intention.

Results indicate that there is a significant relationship between trust and

perceived risk and that both are crucial in explaining the internet banking usage

intention. Furthermore, trust in the bank is fundamental not only to reducing risk

perceptions of IBS in general but also to building trust in the banks' competence

in terms of IBS activity.

ATM vendor NCR Corporation and market research agency AcNielsen ORG MARG 2006,66 Customers clearly use the alternative banking

channels for specific set of transactions. Phone banking extensively used for

making balance enquires [81%] and branches for depositing cash [35%] and

other transactions. Nearly 44% of those using the internet actually carryout online

money transfer and the rest use the channel for checking balances in their

accounts. Most of bank customers find ATMs almost as secure as branches.

Anu Antony, (2009)67. Banks profitability eventually depends on its ability

to generate non-fund, fee based income by leveraging on technology.

Technology helps banks to widen their geographic reach. There is certainly a

sea change in the way banks are operating with the advent of e-banking

services.

65 Anita Lifen Zhao, Nicole Koenig-Lewis, Stuart Hanmer-Lloyd, Philippa Ward, (2010) "Adoption of internet banking services in China: is it all about trust?", International Journal of Bank Marketing, Vol. 28 Iss: 1, pp.7 – 26 66 ATM vendor NCR Corporation and market research agency AcNielsen ORG-MARG.2006. A Survey,Latest developments. The journal of banking studies. Vol.xxv. no. 2. February 2006. pg 7 67 Anu Antony, “Banks in India towards a paradigm shiftz’ Mr.Anu Antony., professional banker, December 2009,pg 33. the icfai university press]

33

S. Anitha (2010)68 The endeavor of this paper is to throw more light on

the study, methodology, modus operandi and its results banks have introduced a

new lucrative technology called mobile banking which is using mobile phones as

a medium for extending banking services to target a large number of customers.

With the advent of this new channel, it is possible to bank from anywhere at any-

time and in any condition through either SMS or WAP by linking one’s bank

account to a mobile phone.

Annavarjula & Beldona 200069, 5 Internal organizational elements like

innovative culture, technology readiness for corporate clients employees, and top

management support for business were used to explore the relationship

subsequently for solving problems pertained to resources limitation within SMEs.

Eventually, few empirical studies had examined the influence of

internationalization and corporate e-banking on firm performance

Ankur Gupta (2006)70 Consumer Internet Banking, with its ability to reach

each and every nook and cranny of the world holds great importance for a nation

like India, where conventional Banking services are out of reach for a large

proportion of the masses. But to make it a success it requires more than just an

adequate internet enabling infrastructure. There is a dire need for an adequate

legal and regulatory framework to be put into place. One of the crucial elements

of such a legal and regulatory framework will be Data Protection provisions. The

emphasis of this article is on this aspect of data protection in the electronic

banking sector. The article is an attempt to highlight the importance of data

protection in internet banking and dwell upon possible legal recourses which may

be adopted keeping in mind the current legal framework in India with regards

regulation of Information Technology.

68 S.Anitha, Mobile banking, February 2010, pg 32. Professional banker, the Icfai university press. 69 Annavarjula, M. and Beldona, S. 2000. Multinational-performance relationship: A review and reconceptualization. International Journal of Organizational Analysis, 8 (1), 48-67 70 Ankur gupta,Data Protection in Consumer E-banking, Journal of Internet Banking and Commerce, April 2006, vol. 11, no.1

34

Arpita Khare, (2010)71, Technology is fast altering the business service

scape. Its role in improving customer service levels in being used strategically

and increasingly by service organizations. The service attributes and quality can

be enhanced by deployment of technology. The internet has facilitated

convenience in customer interactions and transactions with the banks. Online

banking is currently emerging as a new approach in India for providing improved

accessibility and expediency to customers. Most banks have their own website

for improving the customer interface and offering online services. The article

studies the applicability of online banking in India and its role in fostering

relationships with customers and giving them more value. The research was

conducted on customers familiar with online banking in India, and their

perceptions about online banking were studied. The findings reveal that

customers are using the services but are skeptical about the financial

transactions and service quality dimensions.

Avinandan Mukherjee, Prithwiraj Nath,(2003),72 The role of trust

encompasses the exchanges and interactions of a retail bank with its customers

on various dimensions of online banking. Specifically lays stress on the bank-to-

customer exchanges taking place through the technological interface.

Hypothesizes share value, communication and opportunistic behaviour as

antecedents to trust. Trust and commitment also have a causal relationship. It

was observed that shared value is most critical to developing trust as well as

relationship commitment. Communication has a moderate influence on trust,

while opportunistic behaviour has significant negative effect. Also finds higher

perceived trust to enhance significantly customers’ commitment in online banking

transaction. An important contribution concerns how trust is developed and

sustained over different levels of customer relationship in online banking. The

future commitment of the customers to online banking depends on perceived

trust. 71 Arpita Khare, (2010), “Online banking in India:An approach to establish CRM” Journal of Financial Services Marketing 15, 176-188 (September 2010) 72 Avinandan Mukherjee, Prithwiraj Nath, (2003) "A model of trust in online relationship banking", International Journal of Bank Marketing, Vol. 21 Iss: 1, pp.5 – 15

35

Avasthi & Sharma (2000-01)73 have analyzed in their study that

advances in technology are set to change the face of banking business.

Technology has transformed the delivery channels by banks in retail banking. It

has also impacted the markets of banks. The study also explored the challenges

that banking industry and its regulator face.

Barbara R. Lewis, Kurt E. Hoel, (1993)74, The banking environment is

characterised by continuing social, economic, technological and regulatory

change, and current challenges include increasing competition from both bank

and non-bank institutions, rapidly developing technological innovation, and

changing customer needs. The focus is on technological developments and the

Nordic Bank environment, and findings from a survey among Norwegian

companies are presented. The Survey considers their use of and attitudes

towards electronic banking services. Recommendations are made with respect to

the marketing activities of Norwegian banks with regard to electronic cash

management services for corporate clients, and the future for such services

Benamati & Serva,200775 argued that The significant moderating factors

are gender, educational level, income, internet experience and internet banking

experience, but not age, The adoption of IB forces consumers to consider

concerns about password integrity, privacy, data encryption, hacking, and the

protection of personal information.

Belch and Belch (2009)76 stated that one major advantage of online

marketing is the Internet allows for a back and forth of information, which gives

users the ability to modify the form and content of the information they receive in

real time. Another advantage of online marketing is that people are spending

73 Avasthi, G.P. and Sharma, M. (2000-01). ‘Information Technology in Banking: Challenges for Regulators’. Prajanan. XXIX(4). 17. 74 Barbara R. Lewis, Kurt E. Hoel, (1993) "Corporate Attitudes towards Electronic Banking in Norway", International Journal of Bank Marketing, Vol. 5 Iss: 4, pp.59 - 71 75 Benamati & Serva., “Trust and Distrust in Online Banking: Their Role in Developing Countries,” Information Technology for Development, vol.13, no. 2, pp. 161-175, 2007. 76 Belch, G.E., & Belch, M.A. (2009). Advertising and Promotion: An Integrated Marketing Communications Perspective. (8th ed.). Boston: McGraw Hill.

36

more time on their computer. People look at what is available on the Internet, and

research prices, stores, and ratings. Then they choose which product or service

is best for them.

Black et al. (2001)77 performed a qualitative study on the adoption of

internet services and found out that those with the highest income with a greatest

use of information technology were most likely to purchase financial services

using internet channel.

Bussakorn Jaruwachirathanakul, Dieter Fink, (2005)78 identify the factors

that encourage consumers to adopt internet banking services in Thailand and to

use the study's findings to develop strategies for banks on how to maximize the

rate of adoption. The attitudinal factors that appear to encourage the adoption of

internet banking in Thailand most are “Features of the web site” and “Perceived

usefulness”, while the most significant impediment to adoption is a perceived

behavioural control, namely “External environment”.

Burrett (2008)79 states online marketing is about “carefully targeting users

and getting them to interact with you while they’re engaged with the most

personal, intimate medium ever invented”. Unlike a traditional media audience,

internet users have control of their medium. They decide where they want to

navigate, what they want to do and which links they want to click.

Caalin Guraau,(2002)80 Internet banking is one of the newest Internet

technology applications, which promises multiple benefits both for the financial

institutions and for clients. In the last five years a large number of banks have

launched Web sites, offering online banking services. While the implementation

77 Black N.J. Lockett A., Ennew C. & Winklhofer H. (2001), Adoption of Internet banking, a qualitative study, International Journal of Retail & Distribution Management 29 (8), 390-398. 78 Bussakorn Jaruwachirathanakul, Dieter Fink, (2005) "Internet banking adoption strategies for a developing country: the case of Thailand", Internet Research, Vol. 15 Iss: 3, pp.295 – 311. 79 Burrett, T. (2008). Market online. B & T Magazine, 58(2682), 44-45. 80 Caalin Guraau, “Online banking in transition economies: the implementation and development of online banking systems in Romania”, International Journal of Bank Marketing,2002, Vol.20, issue 6.

37

and the functioning of these digital systems seem to be relatively smooth in the

developed economies, the situation may be different in countries with economies

in transition. The present paper investigates and analyses the present situation of

online banking in Romania, and the appropriate strategies for the successful

implementation and development of online banking services in the Romanian

context.

Camel Herington, Scott Weaven, (2007)81 The purpose of this research

is to explore the impact of online service quality on the level of customer delight

and on the development of customer relationships. A self-complete survey was

used to collect data from a convenience sample of 200 Australian respondents

who use online banking. Factor analysis and structural equation modeling were

used to test the proposed model of relationships. Online service quality has no

impact on customer delight, e-trust or the development of stronger relationships

with customers. It does have a relationship to e-loyalty. However, the

“efficiency” dimension of online service quality is related to e-trust and also

indirectly to relationship strength through e-trust. The “personal need” and “site

organization” dimensions of online service quality are related to e-loyalty, with

“personal needs” exhibiting the strongest impact. Customer delight has no

relationship to online service quality, nor e-trust, relationship strength or e-loyalty.

Carmel Herington, Scott Weaven, (2009)82 in this paper explores the

measurement of e-service quality for e-retail banking, the importance of e-service

quality dimensions to e-retail bank customers, and the relationship between e-

service quality and customer satisfaction. This paper informs knowledge gaps

related to the measurement and structure of e-service quality, its importance and

impact on customer satisfaction. A more holistic measure of e-service quality is

81 Carmel Herington, Scott Weaven (2007),”Can banks improve customer relationships with high quality online services? “. Managing Service Quality, V ol.17,issue: 4. Pp 404-427 82 Carmel Herington, Scott Weaven, (2009) "E-retailing by banks: e-service quality and its imporrtance to customer satisfaction", European Journal of Marketing, Vol. 43 Iss: 9/10, pp.1220 – 1231

38

supported. Good e-service performance impacts customer satisfaction positively,

but does not override unsatisfactory performance in other areas.

Carlos Flavián, Miguel Guinalíu, Eduardo Torres, (2006)83 in this paper

analyzes how consumers’ perceptions of their traditional bank influence their

decision to adopt the services offered by the same bank on the internet. The

results in the paper showed that consumer trust in a traditional bank, as well as

incomes, age and sex are factors that influence consumers’ decision to work with

the same bank via the internet. The results in the paper showed that consumer

trust in a traditional bank, as well as incomes, age and sex are factors that

influence consumers’ decision to work with the same bank via the internet.

Christopher Gan, Mike Clemes, Visit Limsombunchai, Amy Weng, (2006)84 the competitive landscape of financial institutions is shifting and internet

banking is no longer a competitive advantage but a competitive necessity for

banks. However, a limited number of empirical studies have been published in

the marketing literature about electronic banking. This paper seeks to examine

consumers’ choices between electronic banking and non-electronic banking in

New Zealand. The findings in the paper show that the output from the logistic

regression indicates that the service quality, perceived risk factors, user input

factors, employment, and education are the dominant variables that influence

consumers' choice of electronic banking and non-electronic banking channels

Chellappa (2002)85 argue that not all but most transactions are conducted

through Web browsers that connect to merchant sites. According to them,

consumer perceptions of security are developed through visibly sufficient

83 Carlos Flavián, Miguel Guinalíu, Eduardo Torres, (2006) "How bricks-and-mortar attributes affect online banking adoption", International Journal of Bank Marketing, Vol. 24 Iss: 6, pp.406 – 423 84 Christopher Gan, Mike Clemes, Visit Limsombunchai, Amy Weng, (2006) "A logit analysis of electronic banking in New Zealand", International Journal of Bank Marketing, Vol. 24 Iss: 6, pp.360 – 383 85 Chellappa, Ramnath K (2002). “Consumers’ Trust in Electronic Commerce Transactions: The Role of Perceived Privacy and Perceived Security”, Working Paper, University of Southern Cali site.

39

mechanisms that are carried out through the processes of encryption, protection,

verification and authentication. The mechanisms of encryption, digital

authentication, protection, and verification of on-line identity influence the Internet

customers’ perception on information security and increase the likelihood of

consumer confidence and trust.

Chien-Ta Bruce Ho, Wen-Chuan Lin, (2010)86 develop a multiple item

scale for measuring internet banking service quality. . There are five dimensions

and 17 items in the measurement scale for measuring the service quality of

internet banking. The five dimensions are named customer service, web design,

assurance, preferential treatment, and information provision. Based on the

understanding of the key service quality dimensions and the perception of

customers toward e-service quality, managers may discover methods to improve

customer satisfaction, build customer trust, and create loyal customers.

Charles K.Ayo, Uyinomen O.Ekong, Fatudimu Ibukun Tolulope, 200787, Nigeria was described as the fastest growing telecoms nation in Africa

and the third in the World. The country had experienced a phenomenal growth

from a teledensity of 0.49 in 2000 to 25.22 in 2007. This trend has brought about

a monumental development in the major sectors of the economy, such as

banking, telecoms and commerce in general. This paper presents the level of

adoption of ICT in the banking sector and investigates the prospects of m-

Commerce in Nigeria based on strengths, weaknesses, opportunities and threats

(SWOT) analysis. Findings revealed that all banks in Nigeria offer e-Banking

services and about 52% of the offer some forms of m-Banking services. The

banks and the telecoms operators have enormous potentials and opportunities

for m-Commerce but the level of patronage, quality of cell phones, lack of basic

86 Chien-Ta Bruce Ho, Wen-Chuan Lin, (2010) "Measuring the service quality of internet banking: scale development and validation", European Business Review, Vol. 22 Iss: 1, pp.5 – 24 87 Charles K.Ayo, Uyinomen O. Ekong, Fatudimu Ibukun Tolulope, M-Commerce Implementation in Nigeria: Trends and IssuesJournal of Internet Banking and Commerce, August 2007, vol. 12, no.2

40

infrastructure and security issues pose a major threat to its wide scale

implementation.

Chris (2006)88, in his research on Bank ATM Security Advice states that

ATM bank cash machines have been incorporated in our way of life. They offer a

real convenience to those on the run, but at the same time offer an element of

risk. Using a bank ATM machine safely requires awareness and a little planning.

Just because a bank ATM machine is open and available 24-hours a day doesn't

mean it is always safe to use it. He further identifies that Bank ATM robbers are

usually males under 25 years of age and most work alone. ATM robbers usually

position themselves nearby (50 feet) waiting for a victim to approach and

withdraw cash. Half of the ATM robberies occur after the cash withdrawal.

Chi Shing Yiu, Kevin Grant, David Edgar (2007)89 The rapid

development of Internet and Electronic Business has stimulated the banking and

financial sectors towards encouraging customers to bank on-line. This paper

explores the adoption of Internet Banking by retail customers in Hong Kong. The

paper attempts to make sense of Internet Banking in Hong Kong from three

angles: (i) the current adoption rate of Internet Banking; (ii) the influences of

perceived usefulness, perceived ease of use, perceived risk and personal

innovativeness in information technology and (iii) the potential impacts on the

strategic activity of banking organisations operating in the Hong Kong market.

Chuang, Chao Chao, Hu, Fu-Ling (2010)90 This study uses the

quantitative research method to explore consumers' perceptions of Internet

banking services. It is found that checking account balance, the information

about foreign exchange rates, current interest rates and transferring money

between accounts are the most important online banking services features from 88 Chris E. M. (2006). Bank ATM Security Advice: Effective Method of Security Measures. Virtual Banking. Journal of Internet Banking and Commerce. 89 Chi Shing Yiu, Kevin Grant, David Edgar, Factors affecting the adoption of internet banking in Hongkong-implicationf for the banking sector,International Journal of Information Management, Volume 27, Issue 5, October 2007, Pages 336-351 90 Chuang, Chao Chao, Hu, Fu-Ling, Exploring Customers’ Perceptions of E-banking Service, Journal of Global Business Issues, Summer 2010.

41

the customer point of view. On the contrary, customers generally pay less

attention to the following items, such as exchanging opinions with others, reading

versatile daily news and browsing the banking website. Therefore, in addition to

improving transaction technicalities factor and making customers' decision-

making more convenient, future online banking penetration and the success of

complicated financial product offering will depend upon online marketing

activities connected with increasing website security factor, interactivity factor

and better specialty information factor.

Corrocher (2002)91 investigated the determinants of the Internet

technology adoption for the provision of banking services in the Italian context

and also studied the relationship between the Internet banking and the traditional

banking activity, in order to understand if these two systems of financial services

delivery are perceived as substitutes or complements\ by the banks. According to

the results of the empirical analysis, banks seem to perceive Internet banking as

a substitute for the existing branching structure, although there is also some

evidence that banks providing innovative financial services are more inclined to

adopt the innovation than traditional banks

Cracknell, David (2004)92 This article examines what types of electronic

banking technology are open to microfinance institutions. It then proceeds to

examine how various electronic products might be attractive to poor customers in

terms of improved accessibility, affordability and ease of use. From the financial

institution's point of view, the functionality of electronic cards, pricing of electronic

solutions, the segmentation of different products for different client groups and

possible partnerships all need to be considered. The environment can either

support or hinder the adoption of electronic banking and the article describes

how the evolution of the financial and retail sectors, the extent of financial literacy

and the policy and regulatory environment should support these developments.

91 Corrocher, N. (2002), Does Internet banking substitute traditional banking? Empirical evidence from Italy, Working Paper, CESPRI, No. 134, November 92 Cracknell, David Electronic banking for the poor - panacea, potential and pitfalls Small Enterprises Development, Volume 15, Number 4, December 2004, pp. 8-24(17)

42

Although developing an extensive e-banking solution is beyond the range of most

microfinance programs at present, a range of options suitable for some

microfinance programs is presented. Finally, the article suggests principles for

donor involvement in this sector.

Cynthia (2000)93 states that the 24 hours access to the ATM machine is a

double edge sword it has both advantage and disadvantage. It is easy to deduce

that ATM fraud is carried out most in the day time. Also there are occurrences at

night but most ATM users prefer to make withdraw during the day thus

preventing incidences of robbery at night. On the present level of security provide

by banks as regards to ATM. The responses from the tables denote that the

security level is poor. Some banks do not provide any means where customers

can easily report cases of ATM fraud. ATM manuals or FACTA (Fair and

Accurate Credits Transactions Act) is a pertinent document that should be given

to ATM users as they are been issued with ATM but from the study this is

absolutely neglected

Cunningham, Lawrence F, Gerlach, James, Harper, Michael D (2005)94 This research investigates the premise that purchasing e-banking services is

perceived to be riskier than purchasing traditional banking services. Unlike

previous studies on perceived risk that typically focused on the relationship of

perceived risk and information search, this exploratory study examines the

dynamics of perceived risk throughout the various stages of the consumer buying

process. A survey of 159 respondents reveals a risk premium for e-banking

services that follows a systematic pattern throughout the consumer buying

process. When viewed as a dynamic process, perceived risk for e-banking

services shows more radical changes in risk levels than traditional banking

services. The analyses indicate that financial risk drives the risk premium while

93 Cynthia B. (2000). The measurement of white-collar crime using Uniform Crime Reporting (UCR) Data. S department of Justice, Federal Bureau of Investigation, New York. 94 Cunningham, Lawrence F, Gerlach, James, Harper, Michael D, Perceived risk and e-banking services: An analysis from the perspective of the consumer journal of financial services marketing, , Volume 10, Number 2, 1 November 2005, pp. 165-178(14)

43

psychological, physical and time risk play ancillary roles as risk drivers at certain

stages of the consumer buying process. A major implication of this study is that

there is a risk premium for e-banking services and the risk premium permeates

all stages of the consumer buying process.

Dabholkar and Bagozzi (2002)95 stated that technology can have a

significant impact on service delivery, hence reducing the problems pertinent in

face to face settings.

David H. Wong, Nexhmi Rexha, Ian Phau,(2008)96 aim to re-examine

the role of traditional service quality in an e-banking environment by providing a

review of how traditional service quality perceptions have evolved through the

current and continuing stream of change in banking technology and the

corresponding changes in the nature of how banks interact with their customers

Damien Hutchinson, Matthew Warren, (2003)97 in their article stated

that as a continually growing financial service of electronic commerce, Internet

banking requires the development and implementation of a sound security

procedure. This involves designing effective methods via which users can be

authenticated in a remote environment. Specifically for Internet banking there is a

real need for a way uniquely to identify and authenticate users without the

possibility of their authenticity being cloned. Some technologies in use have been

presented for meeting the security requirements for national, regional and global

Internet banking assurance. Concentrates on presenting a security framework for

Internet banking based on discovering and defining these pathways in terms of

adequate authentication mechanisms. They propose a framework concerning

how to identify security requirements for Internet banking such that the

transactions being conducted are secured within their respective environments. 95 Dabholkar, P. and Bagozzi, R. (2002), “An attitudinal model of technology-based self-service: moderating effects of consumers traits and situational factors”, Journal of Academy of Marketing Science, Vol. 30(3), p. 184-201. 96 David H. Wong, Nexhmi Rexha, Ian Phau, (2008) "Re-examining traditional service quality in an e-banking era", International Journal of Bank Marketing, Vol. 26 Iss: 7,2008 pp.526 – 545 97 Damien Hutchinson, Matthew Warren, (2003) "Security for Internet banking: a framework", Logistics Information Management, Vol. 16, Iss: 1, pp.6

44

DeYoung (2001)98 found that the average one year old Internet-only bank

earned significantly lower profits than the average one year old branching bank,

due to low business volumes and high non-interest expenses. It supports the

proposition regarding the Internet-only banks, “fast growth but low (or no) profits.”

Derek Mohammed, (2010)99 This paper examines some of the challenges

of online marketing, including the importance of adding online marketing to

corporation budgets. A review of the pros and cons of social networking on the

Internet, when used as a marketing tool by companies is presented. In addition,

new forms of Internet shoppers and new niches for companies are identified.

This paper discusses some key advantages and disadvantages of online

marketing.

Dexiang Wu, Desheng Dash Wu, (2009)100 Online banking has attracted

a great deal of attention from various bank stakeholders such as bankers,

financial service participants, and regulators. The purpose of this paper is to

analyze the online banking service performance of gaint US and UK banks. Risk

analysis is also conducted. Divya Singhal and V. Padhmanabhan (2008)101 Internet banking is

becoming is increasingly becoming popular because of convenience and

flexibility. The present paper explores the major factors responsible for internet

banking based on respondents’ perception on various internet applications. It

also provides a framework of the factors which are taken to assess the internet

banking perception.

98 DeYoung, R (2001b), “The Financial Performance of Pure Play Internet Banks”, Economic Perspectives 25(1): 60-75, Federal Reserve Bank of Chicago 99 Derek Mohammed, 2010 Ecommerce: Ongoing Challenges Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2 100 Dexiang Wu,Desheng Dash Wu, (2009)“Performance evaluation and risk analysis of online banking service”, Kybernetes, Vol.39, issue 5, 2009. 101 Divya Singhal and V. Padhmanabhan, A Study on Customer Perception Towards Internet Banking: Identifying Major Contributing Factors, The Journal of Nepalese Business Studies Vol. V, No. 1, 2008, December Page: 101-111

45

Divakar Goswami, Satish Raghavendran, (2009)102 establish the

potential that mobile banking offers to both banks and mobile carriers.

Acknowledging the inherent difficulties of convergence between large and very

different industries, it then explores the merits and shortcomings of existing

partnership models and offers suggested best practices. Open-federated models

– involving partnerships between large numbers of banks and mobile carriers to

provide a shared platform for mobile-banking services – access the broadest

customer base and minimize the costs of developing proprietary software and

infrastructures

Ebling, (2001)103 This paper describes an empirical study of investigating

recent trend and development of the application of e-banking (banking though

internet) in a typical developing country – Bangladesh, and its economic impact

on local financial institutions. Currently, Bangladesh is far behind in terms of e-

banking development and applications. More specifically, while it is a fact that

currently many banks in Bangladesh have implemented e-banking services,

however, comparing with most developed countries, the e-banking application in

Bangladesh is only in its infancy stage and there is a huge gap to be fulfilled with

new research and development effort. As such, addressing the current issues

and challenges in the development of e-banking in Bangladesh is the primary

motivation of this research. In addition, customer’s transaction and

communication abilities have been improved by the developments of information

technology. Information technology enabled electronic channels to perform many

banking functions that would traditionally be carried out over the counter Elizabeth Daniel (1999)104, Electronic or online banking is the newest

delivery channel to be offered by the retail banks in many developed countries

and there is wide agreement that this channel will have a significant impact on

102 Divakar Goswami, Satish Raghavendran, (2009) "Mobile-banking: can elephants and hippos tango?", Journal of Business Strategy, Vol. 30 Iss: 1, pp.14 – 2038 103 Ebling, T. (2001) ‘The economics of online banking’, Target Marketing, Philadelphia, Vol. 24, No. 2, pp.67–7. 104 Elizabeth Daniel, (1999) "Provision of electronic banking in the UK and the Republic of Ireland", International Journal of Bank Marketing, Vol. 17 Iss: 2, pp.72 – 83

46

the market aims to quantify the current provision of electronic services by major

retail banking organizations in the UK and the Republic of Ireland. Additional

insight into the banks’ adoption of this new channel is gained by exploring two

areas important in the analysis of new offerings, that is: an organization‘s

approach to innovation; and their view of the current and future markets. It is also

found that the organization‘s vision of the future, their prediction of customer

acceptance, which tends to be very low, and their organizational culture of

innovation are the most important of the suggested factors in their adoption of

electronic delivery

Eun-Ju Lee, Kyoung-Nan Kwon, David W. Schumann, (2005)105 For a

new technology-based product or service at an early stage of diffusion, it is likely

that only a small subset of consumers have adopted it. When non-adopters still

comprise the majority of the target populations, describing all non-adopters as a

homogeneous population may be inaccurate and inappropriate. It is important to

be able to identify differences, not only between adopters and non-adopters, but

also among non-adopters, the latter providing a means of identifying the

consumer segments likely to be profitable in the future. The first objective of this

paper is to demonstrate the appropriateness of further segmenting the non-

adopter category based on motivations (intentions) to adopt internet-banking by

those who are “persistent non-adopters” and those who are “prospective adopters”. The second objective of this paper is to further the understanding of

the adoption process of internet banking by examining a range of diffusion

factors that affect consumers’ adoption behavior. Dr. Francisco Muñoz-Leiva, Prof. Teodoro Luque-Martínez, Dr. Juan Sánchez-Fernández, (2010)106 contributes to the stream of TRUST research

with a focus on optimizing this perception via electronic transactions in the

105 Eun-Ju Lee, Kyoung-Nan Kwon, David W. Schumann, (2005) "Segmenting the non-adopter category in the diffusion of internet banking", International Journal of Bank Marketing, Vol. 23 Iss: 5, pp.414 – 437 106 Dr.Francisco Muñoz-Leiva, Prof.Teodoro Luque-Martínez, Dr. Juan Sánchez-Fernández, (2010) "how to improve trust toward electronic banking?", Online Information Review, Vol. 34 Iss: 6

47

banking industry. Specifically, the study examines trustworthiness toward a bank

and on its dependability using a variety of "institution-based" trust mechanisms,

such as security of transaction, reputation and web quality.The analysis

discovers that the mere presence of seals is not in itself important for the

explanation of beliefs about trustworthiness and dependability of a website with

electronic banking services. But the manner in which the trust-generating

mechanisms are presented, either individually or in their different combinations,

has different effects on trust. As the use of online banking steadily increases

over the year

(Fredriksson, 2003)107 knowledge about defining high-quality service

delivery over the Internet becomes crucial for banks, which want to stay

competitive on the marketplace. If banks have knowledge about the quality

attributes they can use to measure the quality of their online services and the

overall satisfaction of their customers with each of these attributes, it would be

much easier for them to take necessary measures and steps to improve the

overall service quality.

Fulbag Singh & Davinder Kaur, 2010108 Banking sector plays a pivotal

role in the growth of any economy by mobilizing people's funds into productive

channels. Banks provide services for the fulfilment of consumers' financial needs.

Whether the area is rural or urban, banks are trying to diversify their services to

the masses, and customers should also be aware of these. But due to lower

literacy level and inadequate sources of information in rural areas, the customers

are not fully aware of the services offered by the banks. Therefore, the present

research work is being carried out to find the gaps in the awareness level of rural

and urban bank customers and to identify the significant sources of information

influencing customer awareness.

107 Fredriksson, O. (2003). Internet-based self-services: Relational Aspects of E- Banking- a private client survey analysis. IMIT working paper series, 136. 108 Fulbag Singh & Davinder Kaur Customer Awareness Regarding Banking Services: An Empirical Study, volxxxi no 2, july-sep 2010,vinimaya archives

48

Furst, K; Lang, W., William and Nolle, E., Daniel (2000)109 presented

data on the number of national banks in U.S. offering Internet banking and the

products and services being offered. Only 20 percent of national banks offered

Internet banking in the third quarter of 1999. However, as a group, these

‘‘Internet banks’’ accounted for almost 90 percent of national banking. Banks in

all sizesystem assets and 84 percent of small deposit accounts. categories

offering Internet banking tend to rely less on interest-yielding activities and core

deposits than do non-Internet banks. Also, Institutions with Internet banking

outperformed non- Internet banks in terms of profitability.

Gaston leblanc, (1993)110 presented an exploratory study on customer

motivations towards the use and non-use of an automated teller machine with

data collected from a total of 208 customers of a financial institution. An analysis

of results based on demographic variables reveals significant differences

between users and non-users in terms of education only. Results also show that

convenient accessibility of a financial institution and avoidance of waiting lines

are the principal reasons for using the automated teller. Furthermore, in

comparison with non-users, the user group is more likely to believe the

automated teller improves service quality, reduces the financial institution's

operating costs, presents no personal or financial risks, and is simple to use. The

non-user group for its part prefers dealing with human tellers, finds the machine

complex to use, and associates personal and financial risks with the use of the

automated teller. Geetika, Nandan, T & Upadhyay, AK (2008)111 A study on the Internet

users, conducted by Internet and Mobile Association of India (IAMAI), found that

about 23% of the online users prefer IB as the banking channel in India, second

to ATM which is preferred by 53%. Out of the 6,365 Internet users sampled, 35% 109 Furst, K; Lang, W., William and Nolle, E., Daniel (2000), “Who Offers Internet Banking?” Office of the Comptroller of the Currency, Quarterly Journal, Vol. 19, No. 2, June. 110 Gaston Leblanc, (1993) "Customer Motivations: Use and Non-use of Automated Banking", International Journal of Bank Marketing, Vol. 8 Iss: 4, pp.36 – 40 111 Geetika, Nandan, T & Upadhyay, AK., “Internet Banking in India: Issues and Prospects,” The Icfai Journal of Bank Management, vol. 7, no. 2, pp. 47-61, 2008.

49

use online banking channels in India. This shows that a significant number of

online users do not use IB, and hence there is a need to understand the reasons

for not using it .

Georgia, Giordani, Christos Floros,(2009),112 This paper examines the

internet banking services that Greek commercial banks are offering. It also

presents the associated costs and fees that customers face when using these

services. The findings show that there are disparities in the fees that Greek

commercial banks impose on their customers for performing banking

transactions over the internet. When compared Automated Teller Machine (ATM)

fees with branch fees, it was found that ATM charges are lower than branch fees.

Finally, the paper concludes that internet banking fees are lower than both ATM

fees and branch fees. Gerrard and Cunningham (2003)113 found a positive correlation between

convenience and online banking and remarked that a primary benefit for the bank

is cost saving and for the consumers a primary benefit is convenience.

Gerard Prendergast, Norman Marr, (1994)114 The increasing provision of

self-service technologies such as automated telling machines (ATMs) in retail

banking means that customers now have a variety of means of carrying out their

banking business In many cases, the functions of these technologies overlap

with the functions of the bank branch. Seeks to determine the form and function

of the retail bank branch network in New Zealand. In the presence of these self-

service technologies for the years 2000 and 2010. The results indicated that in

the short term the bank branch in its current from will remain very important. In

the longer term, while the bank branch will still be very important, one can expect

a reduction in numbers In part this reduction will be caused by the availability of

112 Georgia Giordani, Christos Floros, “Internet banking services and fees: the case of Greece.” International journal of Electronic Finance, June 2009, Vol.3, Issue 2, Pg 177-198 113 Gerrard, P. and Cunningham, J.B. (2003) ‘The diffusion of internet banking among Singapore consumers’, International Journal of Bank Marketing, Vol. 21, No. 1, pp.16–2 114 Gerard Prendergast, Norman Marr, (1994) "Towards a Branchless Banking Society?" International Journal of Retail & Distribution Management, Vol. 22 Iss: 2, pp.18 – 26

50

remote banking technology which reduces the need for the bank branch The

main city centres will supply customers with staff less branches – a branch which

is dominated by self-service technology In branches which are still dominated by

human staff, tellers will become salespeople armed with platform automation. i.e.

personal computers which both themselves and customers can access to in

order to obtain product profiles and other information Self-service technology in

the branch “vestibules” will also become widespread.

Gopalakrishnan. S, Wischnevsky. J.D, Damanpour. F, 2003115 The

Internet is an outcome of the convergence of multiple technologies and its

applications have the potential to strongly influence many industries. Focusing on

the banking industry, we examine the factors that influence the adoption of the

Internet at three levels of analysis: the external context of the industry; the

industry; and the firm. At the external context level, we analyze how the

development of a favorable external context facilitates the adoption of a new

technological application: Internet banking. At the industry level, we examine the

types of innovations that a new technological application engenders, the role

incumbents, and new entrants play in promoting the adoption of Internet banking,

and other factors that impact the speed of Internet banking diffusion. At the firm

level, we examine differences in banks' strategies and organizational designs

associated with the adoption of Internet banking as an added delivery channel

versus as a separate business. We conclude by discussing unique features in

the emergence and adoption of Internet banking and its potential performance

implications.

Guru, B., Vaithilingam, S., Ismail, N. Guru et al. (2003)116 evaluate the

websites of banks in 12 Islamic countries. They find that the majority of Islamic

countries are still in the early stages of developing IB. Only some Islamic banks

115 Gopalakrishnan. S, Wischnevsky. J.D, Damanpour. F “A multilevel analysis of factors influencing the adoption of Internet Banking” Engineering Management, Nov 2003, Volume: 50,issue, pg 413-426 116 Guru, B., Vaithilingam, S., Ismail, N. and Prasad, R. (2000). “Electronic Banking in Malaysia: A Note on Evolution of Services and Consumer Reactions.” Journal of Internet Banking and Commerce, Volume 5, No. 1, June.

51

in the Middle East have well-developed IB websites. and Prasad, R. (2000)92

examined the various electronic channels utilized by the local Malaysian banks

and also accessed the consumers’ reactions to these delivery channels. It was

found that Internet banking was nearly absent in Malaysian banks due to lack of

adequate legal framework and security concerns. However over 60 percent of

the respondents were having Internet access at home and thus represented a

positive indication for PC based and Internet banking in future.

Hasan Banu. S (2004)117, studied about customer services in rural banks.

She found that the rural customers are not aware of the purpose for which the

loan is available and how they can be availed. Customers do not know the

complete uses, regulations and procedures of the banks as the bank personnel

do not take interest in educating customers.

Hasan (2002)118 found that online home banking has emerged as a

significant strategy for banks to attract customers. Almost 75 percent of the

Italian banks have adopted some form of Internet banking during the period

1993-2000. It also found that the higher likelihood of adopting active Internet

banking activities is by larger banks, banks with higher involvement in off-balance

sheet activities, past performance and higher branching network.

Hatice Jenkins, (2007)119, aims to examine the factors affecting the

adoption of internet banking services by domestic commercial banks in a

sparsely populated small island. Evidence from survey studies and from banks’

web sites indicated that in North Cyprus have been consistently moving towards

providing internet banking services despite a very small potential market to

share.

117 Hasan banu.S, in ”Customer service in rural banks”. An analytical study of attitude of different types of customers towards banking services” IBA Bulletin, Vol.xxxvi, No.8,August 2004, pp 21-29. 118 Hasan, I., (2002). “Do Internet Activities Add Value? The Italian Bank Experience”, Working Paper, Federal Reserve Bank of Atlanta, New York University. 119 Hatice Jenkins, “Adopting internet banking services in a small island state: assurance of bank service quality.”, Management Service Quality, Vol. 17, issue 5, 2007.

52

Hans H. Bauer, Malik Hammerschmidt, Tomas Falk (2005)120 In the

internet economy, the business model of web portals has spread rapidly over the

fast few years. Despite this, there have been very few scholarly investigations

into the services and characteristics that transform a website to a portal as well

as into the dimensions that determine the customer’s evaluation of the portal’s

service quality. Based on an empirical study in the field of e-banking, the authors

validate a measurement model for the construct of web portal quality based on

the following dimensions; security and trust, basic services quality, cross-buying

services quality, added value, transaction support and responsiveness. The

identified dimensions can reasonably be classified into three service categories;

core services, additional services and problem-solving services. The knowledge

of these dimensions as major determinants of consumer’s quality perception in

the internet provides banks a promising starting point for establishing an effective

quality management for their e-businesses. Hua (2009)121 conducted an experiment to investigate how users

perception about online banking is affected by the perceived ease of use of

website and the privacy policy provided by the online banking website. In this

study, it also investigates the relative importance of perceived ease of use,

privacy, and security. Perceived ease of use is of less importance than privacy

and security. Security is the most important factor influencing user’s adoption

Hanudin Amin Ricardo Baba Mohd Zulkifli Muhammad 2005122 Today, the advancement of mobile technologies has provided an opportunity for

financial innovations introduced by financial providers is mobile banking. This

study adopts a technology acceptance model (TAM) to investigate factors that

providers in introducing new financial innovations. One of the emerging financial

120 Hans H. Bauer, Maik Hammerschmidt, Tomas Falk, (2005) "Measuring the quality of e-banking portals", International Journal of Bank Marketing, Vol. 23 Iss: 2, pp.153 - 175 121 Hua, Guangying 2009. An Experimental Investigation of Online Banking Adoption in China, Journal of Internet Banking and Commerce, April, Vol. 14, 122 Hanudin Amin Ricardo Baba Mohd Zulkifli Muhammad An analysis of mobile banking acceptance by Malaysian customers International journal of service industry management, 2005,16( 5)416-435

53

determine an individual’s intention to use mobile banking among bank customers

in Labuan and Kota Kinabalu. The TAM includes perceived credibility, perceived

self-efficacy and normative pressure. Our results support the extended TAM in

predicting bank customers’ behavioral intention to use mobile banking.

Determinants are perceived usefulness, perceived ease of use, perceived

credibility and perceived self-efficacy. Normative pressure was found to be a

weak determinant in explaining bank customers’ intention to use mobile banking.

The study also demonstrates the significant effect of perceived ease of use on

behavioral intention through perceived usefulness.

Howcroft et al. (2002)123 found that the most important factors

encouraging consumers to use online banking are lower fees, less paperwork,

and reduced human errors, which subsequently minimize disputes.

Husain F in124 “highlighted the importance of IT in various sectors. In the

introduction of any new technology system, various organizational, financial and

functional problems are faced. People are generally reluctant to accept new

system, howsoever beneficial it may be. Such problems related to

computerization have been critically and vividly discussed.

Hernan E. Riquelme, Rosa E. Rios, (2010)125 This paper seeks to test

the factors that can influence adoption of mobile banking among current users of

internet banking in Singapore and gender as a moderating variable. Usefulness,

social norms and social risk, in this order, are the factors that influence the

intention to adopt mobile banking services the most. Ease of use has a stronger

influence on female respondents than male, whereas relative advantage has a

stronger effect on perception of usefulness on male respondents. Social norms

123 Howcroft, B., Hamilton, R. and Hewer, P. (2002) ‘Consumer attitude and the usage and adoption of home-based banking in the United Kingdom’, The International Journal of Bank Marketing, Vol. 20, No. 3, pp.111–121. 124 Husain F in “Computerization and Mechanization in Indian banks”, Deep and Deep publication, New Delhi. 125 Hernan E. Riquelme, Rosa E. Rios, (2010) "The moderating effect of gender in the adoption of mobile banking", International Journal of Bank Marketing, Vol. 28 Iss: 5, pp.328 – 341

54

(or the importance of others in the decision), also influence adoption more

strongly among female respondents than male.

Heggede O.D.(2000)126 studied bank customer relationship in India. He

analyzed the responses of 11 different classes of bank customers including

businessmen, salaried, advocates and peasants. He analyzed customers’ views

on the one hand and employees views on the other. The paper concluded that

there is a low correlation among the different occupations and satisfaction from

services in the public sector banks

Heikki Karjaluoto, Minna Mattila, Tapio Pento, (2002)127 explored the

effect of different factors affecting attitude formation towards Internet banking

(online banking) in Finland. The purpose of this paper is to determine those

factors that influence the formation of attitude towards Internet banking on the

one hand, and their relation to the use of online banking services, on the other.

Attitude formation was studied by the use of a structural equation model. The

results are expected to provide both theoretical and practical contributions in the

area of electronic retail banking and understanding of consumer behaviour in the

turbulent financial services industry.

Hsin-Ginn Hwang, Rai-Fu Chen, Jia-Min Lee, (2007)128 The purpose of

this study is to develop a measurement instrument for customer satisfaction with

internet banking (IBCS). A web survey was used with the subjects being internet

banking users of Taiwanese banks. The study demonstrates that all the items in

the Doll and Torkzadeh instrument for end-user computing satisfaction measures

are still valid in the context of internet banking, and that IBCS depends heavily on

security and trust considerations on the internet.

126 Heggade O D, in ” Banker-customer relationship in India, Mohit Publication, (2000), New Delhi, 127 Heikki Karjaluoto, Minna Mattila, Tapio Pento, (2002) "Factors underlying attitude formation towards online banking in Finland", International Journal of Bank Marketing, Vol. 20 Iss: 6, pp.261 – 272 128 Hsin-Ginn,Hwang, Rai-Fu Chen, Jia-Min Lee, 2007 Measuring customer satisfaction with internet banking: an exploratory study. International journal of electronic finance, vol.1, No.3/2007,pp 321-335

55

Haver (2008)129 “Today’s younger, more ‘green’ shoppers aren’t going to

waste precious money and gas going from store to store looking for just the right

item. They shop online whenever they can, narrowing their choices to one or two

items-then go to the store to touch, feel, bounce and check out the actual product

to see if it looks the way it was represented online. IAMAI REPORT 2006130, According to a study carried out by IAMAI, it was

found that people do not prefer online financial transactions due to many reasons

such as security and facilities concerns.[45%], preference for face to face

transactions[39%] , lack of knowledge [22%] and lack of user friendliness of the

channels [10%].]

Jalan, B. (2003),131 IT revolution has brought about a fundamental

transformation in banking Perhaps no other sector has been affected by

advances in technology as much as banking & finance. It has the most important

factor for dealing with the intensifying competition & the rapid proliferationof

financial innovations.

John Simpson (2002)132,This paper investigates the risk, efficiency and

rate of progress in the implementation of electronic commerce (e-commerce) in a

sample of banks from a developed country (the US), and a sample of banks from

developing and emerging markets. The results confirm that the US is very

advanced in its electronic-banking (e-banking) actuation. There is evidence

suggesting that e-banking is driven largely by the prospects of operating costs

minimization and operating revenue maximization. Costs are lower and revenues

higher when banking services are delivered through a branch network. The

129 Haver, K. (2008). Why be on the Internet? Furniture today, 33(17), 2-3 130 IAMAI REPORT 2006,[Internet banking in Hyderabad issues and prospects. Professional bankers –The Icfai University press. September 2009, vol.ix, issue 9] 131 Jalan, B. (2003), “Strengthening Indian Banking and Finance: Progress and Prospects”, IBA Bulletin, Vol. XXV, No. 3 (March), PP. 5-14 132 John Simpson The impact of the Internet in banking: observations and evidence from developed and emerging markets, Telematics and Informatics, vol.19, issue 4, November 2002, Pages 315-330

56

results also suggest that perceptions of banking risk may be partially driven by

similar factors. Using a basic risk-scoring model, bank risk scores (reflecting a

bank's ability to repay depositors) are regressed against operating efficiency

measures.

Jamie Anderson,(2010)133, M-banking is one of the newest approaches

to the provision of financial services through information communication

technology (ICT), made possible by the widespread adoption of mobile phones

even in low income countries. Emerging mobile banking (m-banking platforms) in

developing markets enable two sided markets, bringing together mobile handset

users with other mobile users and commercial partners. It is the argument of this

paper that the emergence of m-banking platforms has the potential for spill-over

effects, and that these spill-over effects will require regulatory authorities to

develop appropriate policy responses

Joseph H.Plummer (1971)134 conducted a study on the life style pattern

of male and female credit card holder using their demographic and purchase

data, the basic demographic pattern and card usage data indicate a widespread

use of commercial bank charge cards across many demographic segments of

population. From the stand point of potential market segments, however the

higher income better educated, middle aged and professional segments are

more prominent on the user index scale. The study depicts certain aspects of

credit card users’ lifestyles. Both mole and female users indicate a convenience

orientation towards credit cards as a satisfactory cash substitute. The study

indicates that users of commercial bank charge cards in contrast to non-users,

exhibited a “contemporary state of mind” and a rejection conservative, traditional

concepts which is a major detriment of card usage beyond demographic

variables

133 Jamie Anderson, (2010) "M-banking in developing markets: competitive and regulatory implications", info, Vol. 12 Iss: 1, pp.18 – 25 134 Joseph H.Plummer, Life style Patterns and commercial bank credit and usuage, Journal of marketing vol.35, 1971m og 35-41

57

Jane M Kolodinsky, Jeanne M. Hogarth, Marianne A Hilgert, (2004)135 in this paper explores factors that affect the of adoption or intention to adopt

three e-banking technologies and changes in these factors over time. Using a

Federal Reserve Board commissioned data set, the paper finds that relative

advantage, complexity/simplicity, compatibility, observability, risk tolerance, and

product involvement are associated with adoption. Income, assets, education,

gender and marital status, and age also affect adoption. Adoption changed over

time, but the impacts of other factors on adoption have not changed. Implications

for both the banking industry and public policy are discussed.

James M. Curran, Matthew L. Meuter, (2005)136 Advances in

technologies have allowed service providers to incorporate many different

technologies into the delivery of their services. These technologies have been

implemented in the service encounter for the customer to use with varying

degrees of success. This research aims to focus on the examination of factors

that influence consumer attitudes toward, and adoption of, self-service

technologies (SSTs). This research has demonstrated that multiple factors need

to be considered when introducing technologies into the service encounter and

that the salient factors may vary among technologies and their stages in the

adoption process.

Jan Mattson, Helge Helmersson, (2005)137 aimed at modeling the e-

competence of internet bank customers with a new text-analytic method.

Theses verbal syntheses (as modeled by a Pretext text- analytic approach) are

purported to illustrate e-competence. A diverging pattern of e-competency was

135 Jane M.Kolodinsky, Jeanne M.Hogarth, Marianne A.Hilgert, “The adoption of electronic banking technologies by US consumers”, International journal of bank marketing, vol.22, issue.4, pp.238-259 136 James M. Curran, Matthew L. Meuter, (2005) Advances in technologies have allowed service providers to incorporate many different technologies into the Self-service technology adoption: comparing three technologies", Journal of Services Marketing, Vol. 19 Iss: 2, pp.103 – 113 137 Jan Mattsson, Helge Helmersson, (2005) “ Internet banking modeling ; the e-competence of customers with a text-analytic CIT approach”, International journal of bank marketing, vol.23, issue, 6, pp 470-483.

58

found. One group of customers was able to handle the web site and the other

group felt abandoned and was not able to adopt technology.

Jabnoun and Al-Tamimi (2003)138 examined perceived services quality

in commercial banks in the United Arab Emirates, emphasizing the importance of

service quality to maintain market share, concluding that customers value human

skills the most in service quality. Finally, the importance of ease of use in

determining successful IT adoption has been highlighted in much previous

literature (Davis, Bagozzi and Warshaw 1989; Moore and Benbasat 1991; Taylor

and Todd 1995).

B.Janki (2002)139 analyzed that how technology is affecting the

employees’ productivity. There is no doubt, in India particularly public sector

banks will need to use technology to improve operating efficiency and customer

services. The focus on technology will increase like never before to add value to

customer services, develop new products, strengthen risk management etc. the

study concludes that technology is the only tool to achieve their goals.

Jayawardhena (2004)140 developed a model consisting of five

dimensions: access, web site interface, trust, attention and credibility and it was

found that customers place more importance upon access and web site interface

than the other dimensions and concluded that banks should focus on building

trust through ensuring the security and privacy of customer information. He

transforms the original SERVQUAL scale to the internet context and develops a

battery of 21 items to assess service quality in e-banking. By means of an

Exploratory Factor Analysis (EFA) and a Confirmatory Factor Analysis (CFA),

these 21 items are condensed to five quality dimensions: access, website

interface, trust, attention and credibility. E-banking is seen as the newest delivery

138 Jabnoun, N. and Al-Tamimi, H. 2003. “Measuring Perceived Service Quality at UAE Commercial Banks.” International Journal of Quality and Reliability Management 20(4): 458-172. 139 B. Janki (2002). ‘Unleashing Employee Productivity: Need for a Paradigm Shift’. Indian Banking Association Bulletin. XXIV(3). March. 7-9. 140 Jayawardhena, C. (2004), “Measurement of service quality in internet banking: the development of an instrument”, Journal of Marketing Management, Vol. 20, p. 185-207.

59

channel of banks in many developed countries and nobody can deny the fact that

such a newest channel is believed to have a significant impact on the banking

market

Jayawardhena & Foley, 2000,141 contends that e-banking is providing

numerous good opportunities for banks and non-bank financial institutions to add

a low cost distribution channel to their existent distribution channels in order to

better serve their customers by offering various products and services with high

quality. However, he further contends that e-banking also brings about

challenges to traditional banks due to the fact that it neutralizes competitive

advantages rooted in a traditional banking network. It is predicted that e-banking

continues mushrooming in the times to come. When e-banking is widely utilized

and becomes more popular, it is very interesting to forecast the future of

traditional banks operating based on their branches.

José Mauro C. Hernandez, José Afonso Mazzon, (2007)142 propose a

new method to investigate adoption of new technologies and tests this method by

looking into the determinants of internet banking adoption in Brazil. The findings

show that the variables that influence the intention to use/continue to use IB are

not exactly the same as those that influence actual adoption. Specifically, the

results seem to suggest that intention to use IB is influenced solely by people's

beliefs about IB, while its actual adoption is influenced also by individual

characteristics Joaquín Aldás-Manzano, Carlos Lassala-Navarré, Carla Ruiz-Mafé, Silvia Sanz-Blas, (2009)143 analyze how consumer innovativeness can be used

141 Jayawardhena, C., & Foley, P. 2000. Changes in the Internet banking sector – The case of internet banking in UK, Internet Research. Electronic Networking Applications and Policy, 10(1), 19-30. 142 José Mauro C. Hernandez, José Afonso Mazzon, (2007) "Adoption of internet banking: proposition and implementation of an integrated methodology approach", International Journal of Bank Marketing, Vol. 25 Iss: 2, pp.72 – 88 143 Joaquín Aldás-Manzano, Carlos Lassala-Navarré, Carla Ruiz-Mafé, Silvia Sanz-Blas, (2009) "The role of consumer innovativeness and perceived risk in online banking usage", International Journal of Bank Marketing, Vol. 27 Iss: 1, pp.53 – 75

60

as a variable to positively influence internet banking adoption both directly and

reducing consumer perceived risk. The impact of innovativeness and risk on

internet banking adoption has been tested through structural equation modeling

techniques. Results reveals consumer innovativeness as a key construct to

improve e-banking adoption both directly and by its effective role in reducing

consumer risk perception of using internet channel in the financial services

context.

Jannatul Mawa, 2010144, E-banking can provide speedier, faster and

reliable services to the customers for which they are relatively happy. E-banking

services not only can create new competitive advantages, it can improve its

relationships with customers. The purpose of this research is to understand the

impact of variables of e-banking on customer satisfaction in Bangladesh. The

study period is from 2006 to November, 2009 because customers enjoyed the e-

banking services newly during this period. Five service quality dimensions

namely reliability, responsiveness, assurance, empathy, and tangibles have been

established based on the SERVQUAL model and the literature review. These

variables have been tested in e-banking to explore the relationship between

service quality and the customer satisfaction. The data were gathered through

survey interview by a structured questionnaire with 250 customers. The study

shows that these factors are the core service quality dimensions for customer

satisfaction in e-banking. The study also explores that reliability, responsiveness

and assurance have more contribution to satisfy the customers of e-banking in

Bangladesh.

Joseph et al. (1999)145 investigated the influence of internet on the

delivery of banking services. They found six underlying dimensions of e-banking

144 Jannatul Mawa Nupur E-Banking and Customers’ Satisfaction in Bangladesh: An Analysis International Review of Business Research Papers Volume 6. Number 4. September 2010. Pp. 145 – 156 145 Joseph, M., McClure, C. and Joseph, B. (1999) ‘Service quality in banking sector: the impact of technology on service delivery’, International Journal of Bank Marketing, Vol. 17, No. 4, pp.182–191

61

service quality such as convenience and accuracy, feedback and complaint

management, efficiency, queue management, accessibility and customization.

Joao F Proença, Marta Martins Silva and Teresa Fernandes (2010).146 The article discusses the virtualization of the interaction processes between

banks and their customers and analyses the influence of the Internet on these

relationships. The research finds three factors related to the use of Internet

banking which strengthen the relationships between banks and their customers:

the intensity of Internet use, the diversity of access locations and the diversity of

Internet applications. From a managerial point of view, these findings have

implications for the development of new relationship approaches based on

technology.

Jørn Flohr Nielsen, (2002)147 Internet banking is now such a well-

established fact in the most developed countries that it is possible to map its

actual role in customer relations. This paper traces important antecedents of

Internet banking adoption and analyses its impact on relationship-marketing

performance. Based on structural equation modeling, the findings offer some

support for the view that the more advanced Internet applications adopted and

the more attractive the Web site, the more the banks are able to keep profitable

customers. However, the results question whether it pays to be a first-mover and

organizational factors related to market orientation and customer-relationship

management seem to have a much stronger impact on customer-related

performance.

Jiaqin Yang* and Kh Tanveer Ahmed, 2009148 This paper describes a

case study about the major issues and challenges in the development of the

electronic banking (e-banking) industry of a relatively underdeveloped nation. 146 Joao F Proença, Marta Martins Silva and Teresa Fernandes (2010) The impact of the Internet upon bank marketing Journal of Financial Services Marketing 15, 160-175 (September 2010) | 147 Jørn Flohr Nielsen, (2002) "Internet technology and customer linking in Nordic banking", International Journal of Service Industry Management, Vol. 13 Iss: 5, pp.475 – 495 148 Jiaqin Yang and Kh Tanveer Ahmed, Recent trends and developments in e-banking in an underdeveloped nation – an empirical study,International journal of electronic finance, Vol.3, no.2, 2009, pg 115-132

62

This research shows that even in many less developed nations; the application of

e-banking can help their local banks reduce operating costs and provide a better

and fast service to their customers. The research objectives are to investigate the

current trends and developments in e-banking and provide managerial insights

for the banking industry in those underdeveloped nations. The collected data are

examined through statistical analysis tools. Managerial implications are

discussed with suggestions for future research.

Júlio Püschel, José Afonso Mazzon, José Mauro C. Hernandez, (2010)149 This paper's objective is to propose an integrated framework to

investigate the adoption intention of mobile banking technology and to test it in

the Brazilian context. The framework offers an integrated view, taking into

account more predictors than other studies on the adoption of innovations for

non-users, the framework was able to explain approximately 69 percent of the

dependent variable (intention to adopt mobile banking) variation, which is a figure

higher than those obtained in previous studies. It was also observed that the

predictors' influence over the criterion variable was different for each group of

mobile banking users and non-users.

Mr. D. Joseph Anbarasu, 1997150 presented the features, operations ,

networking and recent developments in a credit card system, Bankers consider

‘minimizes inconvenience’, ‘minimizes cost of transactions’ and ‘time saving’ to

be important benefits and ‘chances of government access’, ‘chances of fraud’

and ‘lack of information security ’ to be vital risks associate with electronic

banking.

Jun and Cai (2001)151 identified 17 service quality dimension of i-banking

service quality. These are reliability, responsiveness, competence, courtesy, 149 Júlio Püschel, José Afonso Mazzon, José Mauro C. Hernandez, (2010) "Mobile banking: proposition of an integrated adoption intention framework", International Journal of Bank Marketing, Vol. 28 Iss: 5, pp.389 – 409 150 Plastic Revolution through information technology 1997 by Mr.D.Joseph Anbarasu, a commerce lecturer and course coordinator of IGNOU at Bishop Heber College, Tiruchirappalli. 151 Jun, M. and Cai, S. (2001) ‘The key determinants of internet bank service quality: a content analysis’, International Journal of Bank Marketing, Vol. 19, No. 7, pp.276–291.

63

credibility, access, communication, understanding the customer, collaboration,

continuous improvement, content, accuracy, ease of use, timeliness, aesthetics,

security and divers features. They also suggested that some dimensions such

as responsiveness, reliability and access are critical for both traditional and

internet banks.

Jonathan Donner; Camilo Andres Tellez 2008152 Around the globe,

various initiatives use the mobile phone to provide financial services to those

without access to traditional banks. Relatively little scholarly research explores

the use of these m-banking/m-payments systems. This paper calls attention to

this gap in the research literature, emphasizing the need for research focusing on

the context(s) of m-banking/m-payments use. Presenting illustrative data from

exploratory work with small enterprises in urban India, it argues that contextual

research is a critical input to effective 'adoption' or 'impact' research. Further, it

suggests that the challenges of linking studies of use to those of adoption and

impact reflect established dynamics within the Information and Communication

Technologies and Development (ICTD) research community. The paper identifies

three cross-cutting themes from the broader literature (amplification vs. change,

simultaneous causality, and a multi-dimensional definition of trust), each of which

can offer increased theoretical clarity to future research on m-banking/m-

payments systems.

As Karjaluoto et al. (2002)153 argued that ‘banking is no longer bound to

time and geography. Customers over the world have relatively easy access to

their accounts, 24 hours per day, and seven days a week’. The author further

argued that, with internet banking services, the customers who felt that branch

banking took too much time and effort are now able to make transactions at the

click of their fingers.

152 Jonathan Donner; Camilo Andres Tellez mobile banking and economic development linking adoption . impact and use, Asian Journal of Communication, 1742-0911, Volume 18, Issue 4, 2008, Pages 318 – 332 153 Karjaluoto, H., Mattila, M., & Pento, T. 2002. Factors underlying attitude formation towards online Internet banking in Finland. International Journal of Bank Marketing, 20(6), 261-272.

64

G.Kannabiran, P.C. Narayan (2005)154, Over the last decade India has

been one of the fastest adopters of information technology, particularly because

of its capability to provide software solutions to organizations around the world.

This capability has provided a tremendous impetus to the domestic banking

industry in India to deploy the latest in technology, particularly in the Internet

banking and e-commerce arenas. This article discusses the experiences of a

private-sector bank in deploying Internet banking and e-commerce in India.

Strategic alignment of business and IT strategies, planning and implementation

of e-banking initiatives and management of benefits are captured, along with key

contributions to development.

Keldon Bauer and Scott E.Hein(2006)155 Financial service providers

have increasingly offered customers new remote access to such services, with

Internet banking being the latest example. While Internet banking has been

available for years, the early adoption by customers of this technology was

disappointing to most. This paper examines the demand for remote access to

banking accounts by consumers and finds that when the technology is new, the

traditional risk return models including variables allowing for heterogeneous risk

add power in modeling the adoption decision. Perceived risks in Internet banking

are seen to be responsible for some of the hesitation to adopt. Ironically, older

consumers are found to be less likely to adopt Internet banking regardless of

their risk tolerances. However, younger consumers are found to be early

adopters only when they have relatively high levels of risk tolerance.

Koenig-Lewis, Adrian Palmer, Alexander Moll, (2010)156 This paper

aims to investigate the barriers for adopting mobile banking services. The results

of the study indicated that compatibility, perceived usefulness, and risk are 154 G.Kannabiran, P.C.Narayan, Deploying Internet banking and e-commerce-case study of a private sector bank in India, information technology for development, vol.11, issue 4, pp 363-379, Autumn (Fall) 2005. 155 Keldon Bauer and Scott E.Hein, The effect of heterogeneous risk on the early adoption of internet banking technologies, Journal of Banking & Finance, Vol. 30, Issue 6, june 2006, Pages 1713-1725. 156 Koenig-Lewis, Adrian Palmer, Alexander Moll, (2010) "Predicting young consumers' take up of mobile banking Journal of Bank Marketing, Vol. 28 Iss: 5, pp.410 – 432.

65

significant indicators for the adoption of m-banking services. Compatibility not

only had a strong direct effect but was also identified as an important antecedent

for perceived ease of use, perceived usefulness and credibility. Trust and

credibility are crucial in reducing the overall perceived risk of m-banking. Nicole

services", International

Krishnan Dandapani, Edward R Lawrence, (2008)157, identify the

causes behind the failures of virtual banks. This work underscores the

importance of the differing financial metrics in the virtual and brick and mortar

banking channel, when analyzing bank failures. This is probably the first study to

examine the causes of failures of virtual banks and contrast them with brick and

mortar banks.

Kenneth B. Yap,David H. Wong,Claire Loh, Randall Bak (2010)158 in

this paper examines the role of situation normality cues (online attributes of the

e-banking web site) and structural assurance cues (size and reputation of the

bank, and quality of traditional service at the branch) in a consumer's evaluation

of the trustworthiness of e-banking and subsequent adoption behaviour. The

size and reputation of the bank were found to provide structural assurance to the

customer but not in the absence of traditional service quality. Web site features

that give customers confidence are significant situation normality cues. .

Khalil and Pearson (2007)159 has found that trust significantly affects

attitude towards i-banking acceptance. To encourage i-banking adoption, banks

need to develop strategies that improve the customer’s trust in the underlying

technology. The other factors include quick response, assurance, follow-up and

empathy. Security, correct transaction, customer control on transaction

157 Krishnan Dandapani, Edward R Lawrence,”Virtual bank failures: an investigation”, Managerial Finance, 2008, vol.34, issue 6. 158 Kenneth B. Yap, David H. Wong, Claire Loh, Randall Bak: Offline and online banking – where to draw the line when building trust in e-banking? International journal of bank marketing, Volume: 28, issue 1 2010. 159 Khalil, M.N. and Pearson, J. M. (2007), ‘The Influence of Trust on Internet Banking Acceptance’ Journal of Internet Banking and Commerce An open access Internet journal August 2007, Vol. 12, No.2.

66

(personalisation), order tracking facilities and privacy are other important factors

in the online service that affect the customer satisfaction.

Khalil Md Nor J. Michael Pearson 2008160 In this study, we extend the

decomposed theory of planned behavior (DTPB) by incorporating trust and

examining its impact on an individual's intention to adopt Internet banking. A

majority of the technology adoption research has been completed in developed

countries such as the U.S. Overall, the results indicate that the proposed model

provides a good understanding of factors that influence the intention to use

Internet banking. From a theoretical perspective, the findings help further our

understanding of the constructs that impact technology adoption in an under

researched area: developing countries. It also confirms the multidimensionality of

trust and its role in the adoption of Internet banking. From a practical perspective,

the findings can help banks who wish to offer Internet banking services make

informed decisions about what actions they can take to increase their chances of

success.

Katariina Maenpaa, (2006)161 explores Internet banking services (IBS),

consumers availing the services and the potential development possibilities of

the services in the challenging operational environment. The major finding is that

three of the consumer clusters do not value service dimensions containing

experiential features, whereas the fourth cluster, comprising mainly of

youngsters, perceived those service dimensions very appealing.

Liao and Cheung (2002)162 found that Singaporeans expectations

regarding accuracy, security, transaction speed, user-friendliness, user

involvement, and convenience were the most important quality attributes in the

perceived usefulness of internet-based e-banking. 160 Khalil Md Nor J. Michael Pearson 2008- An Exploratory Study Into The Adoption of Internet Banking in a Developing Country: Malaysia, journal of internet commerce, Vol.7, Issue 1 2008, pp 29 – 73. 161 Katariina Mäenpää, (2006) "Clustering the consumers on the basis of their perceptions of the Internet banking services", Internet Research, Vol. 16 Iss: 3, pp.304-322. 162 Liao, Z. and Cheung, M.T. (2002), “Internet-based e-banking and consumer attitudes: an empirical study”, Information & Management, Vol. 39(4), p. 283-95.

67

Z.Liao and W.K.Wong (2008)163 empirically explores the major

considerations associated with Internet-enabled e-banking systems and

systematically measures the determinants of customer interactions with e-

banking services. The results suggest that perceived usefulness, ease of use,

security, convenience and responsiveness to service requests significantly

explain the variation in customer interactions. Both perceived usefulness and

perceived ease of use have significant impacts on customer interactions with

Internet e-banking services. Perceived security, responsiveness and

convenience also represent the primary avenues influencing customer

interactions. The findings have managerial implications for enhancing extant

Internet e-banking operations and developing viable Internet e-banking service.

Lisa Wessels, Judy Drennan, (2010)164 aim to identify and test the key

motivators and inhibitors for consumer acceptance of mobile phone banking (M-

banking), particularly those that affect the consumer's attitude towards, and

intention to use, this self-service banking technology Perceived usefulness,

perceived risk, cost and compatibility were found to affect consumer acceptance

of M-banking. The results also support a mediation model, whereby attitude

transfers the affects of the consumers' perceptions to their intention to use M-

banking.

Luiz Moutinho, Douglas T. Brownlie, (1993)165, The nature and direction

of the satisfactions that are delivered to consumers of bank services are

explored, and the criteria used to evaluate these services are highlighted. The

non-metric multidimensional scaling technique enabled respondents' perceptions

to be represented spatially. It is revealed that respondents had high levels of

satisfaction with regard to the location and accessibility of branches and ATMs, 163 Z. Liao and W.K.Wong,”The determinants of customer interactions with internet –enabled e-banking services”, The journal of the Operational Research Society, vol.59, No.9,September 2008, pp 1201-1210. 164 Lisa Wessels, Judy Drennan, (2010) "An investigation of consumer acceptance of M-banking", International Journal of Bank Marketing, Vol. 28 Iss: 7, pp.547 – 568. 165 Luiz Moutinho, Douglas T. Brownlie, (1993) "Customer Satisfaction with Bank Services: A Multidimensional Space Analysis", International Journal of Bank Marketing, Vol. 7 Iss: 5, pp.23 – 27.

68

and acceptance of the current levels of banking fees; but expressed some

caution in their evaluation of new and improved services

Latest developments (2008)166 ATMs have become a more preferred

mode of banking in the Indian banking industry. A lot of customers prefer

conducting transactions on ATMs rather than branches as it provides more

convenience to customers. According to RBI data there are about 17000 ATMs,

while branches across the use are 50000 of these SBI with its seven associates

alone has the largest ATM counters of about 600.

Laura Bradley, Kate Stewart, (2002)167 Although Internet banking is a

growing phenomenon, the underlying factors driving and inhibiting its diffusion

are not well understood. This paper presents empirical research that investigated

the factors driving and inhibiting Internet banking. The main component of the

research was a Delphi study of expert opinion. This paper gives a brief overview

of the academic literature on the diffusion of innovation and Internet banking. The

conduct and findings of the Delphi study are then reported. The paper concludes

that Internet banking will become an extremely important distribution channel in

the future, with the drivers overcoming the inhibitors in influencing the rate.

Further to this, the paper indicates that the existing diffusion of innovation

literature identifies some of the factors instrumental in the diffusion of Internet

banking. However, this study identifies additional issues

Long Pham, Thien H Kieu, Tuan M Tran, Huy P Tran168 E-banking is

seen as the newest delivery channel of banks in many developed countries and

nobody can deny the fact that such a newest channel is believed to have a

significant impact on the bank market. It is contended that e-banking is providing

166 [Latest developments. The journal of banking studies. vol.xxvii, no.4, April 2008. pg .7] 167 Laura Bradley, Kate Stewart, (2002) "A Delphi study of the drivers and inhibitors of Internet banking", International Journal of Bank Marketing, Vol. 20 Iss: 6, pp.250 – 260. 168 Long Pham, Tuan M Tran, E-Banking Adoption in Vietnam Southeast Asia Regional Conference Ho Chi Minh City,Vietnam Trends in International Business: Change and Competition Issues Paper no. P019,page 1-19. Liang Han, (2008) "Bricks vs clicks: entrepreneurial online banking behaviour and relationship banking", International Journal of Entrepreneurial Behaviour & Research, Vol. 14 Iss: 1, pp.47 – 60.

69

numerous good opportunities for banks and non-bank financial institutions to add

a low cost distribution channel to their existent distribution channels in order to

better serve their customers by offering various products and services with high

quality. Little research on factors influencing the adoption of e-banking has been

implemented in countries that are emerging as new potential markets (such as

Vietnam) with very high economic growth rates. Thus, this study has, based on

an extensive review of literature on e-banking benefits for both banks and their

customers and relevant theories on innovation adoption, proposed a

comprehensive model of e-banking adoption by customers in Vietnam.

Liang Han, (2008)169 examines the impacts of entrepreneurial online

banking and relationship banking on the severity of financial problems perceived

by entrepreneurs and their interactive effect. He also investigates how

characteristics of individual businesses and entrepreneurial demographics

influence SMEs' financial situation. He found that both entrepreneurial online

banking behaviour and relationship banking alleviates the severity of financial

problems perceived by entrepreneurs. The relationship affect is less evident for

entrepreneurs who most frequently use an online approach to communicate with

their banks than for those using traditional methods. Business and entrepreneur

characteristics also have a strong impact on the severity

Luis.V. Casalo, Carlos Flavian, Miguel Guinaliu (2008)170 Customer

loyalty and positive word-of-mouth (WOM) have been traditionally two main goals

aimed at by managers. Focusing on the online banking, the importance of these

concepts is even greater due to the increasing competence in electronic

commerce. Thus, the purpose of this paper is to characterize both concepts in

the e-banking context. This research showed that satisfaction with previous

interactions with the bank website had a positive effect on both customer loyalty

169 Liang Han, (2008) "Bricks vs clicks: entrepreneurial online banking behaviour and relationship banking", International Journal of Entrepreneurial Behaviour & Research, Vol. 14 Iss: 1, pp.47 – 60. 170 Luis V. Casaló, Carlos Flavián, Miguel Guinalíu, (2008) "The role of satisfaction and website usability in developing customer loyalty and positive word-of-mouth in the e-banking services", International Journal of Bank Marketing, Vol. 26 Iss: 6, pp.399 – 417.

70

and positive WOM. In addition, website usability was found to have a positive

effect on customer satisfaction and, as expected, loyalty was also significantly

related to positive WOM.

Melek Acar Boyacioglu, Tevfik Nadi Hotamis, Huseyin Cetin, 2010171. The present study is an attempt to examine the performance of

Turkish banks in terms of providing banking products and services through their

web sites. A representative sample of 22 banks operating in Turkey was included

in this study. The websites of these banks have been analyzed in terms of the

financial transaction, non financial transaction, speed, security, uninterrupted

serviceability and visual design. Research is conducted in 2009 and shows that

Turkish banks perform extremely well in IB. This study also investigates the level

of adoption of IB in Turkey. A survey is conducted to obtain customers’

perspectives regarding IB. According to the results obtained from the survey; all

of the participants who did not use IB found IB difficult. They did not know how to

use IB or found IB service insecure and unclear. Therefore, they prefer face-to-

face banking. Moreover, it was observed that the levels of education and income

were the factors that most affected IB use. It was concluded that the clients who

found IB easy and thought that it served their purpose had been using IB for a

longer time. On the other hand, usefulness, web security and personal views did

not have a significant influence on the duration of IB use.

Two studies by professor Mathews and Slocum (1970)172 found a

number of in leveling and useful relationships between social class, income and

the usage of bank credit cards. They found that members of the lower social

classes tend to use their cards for installment purposes, upper classes for

convenience. The study also indicated that the upper classes are generally

favourable towards using credit to purchase luxury goods and the lower class

users tended to use their cards for durable and necessary goods.

171 Melek Acar Bovacioglu, Tevfik Nadi Hotamis, Husevin Cetin,2010, An evalution of internet banking in Turkey, Journal of internet Banking and commerce, August 2010, vol 15. 172 Mathews and Slocum (1970) Trends in International Business: Change and Competition Issues, Paper no. P019, Southeast Asia Regional Conference,Ho Chi Minh City, Vietnam.

71

Malhotra and Singh (2007)173 carried out a study to find the i-banking

adoption by the banks in India. The study suggests that larger banks or banks

with younger age, private ownership and lower branch intensity possess high

probability of adoption of this new technology. Banks with lower market share

also perceive i-banking technology as a means to increase the market share by

attracting more and more customers through this new channel of delivery.

However, the service quality in i-banking from customers needs thorough

analysis to find out the determinants for success and growth of new channel of

delivery in India so that useful guidelines for bankers can be extracted. To this

end, this study aims at determining the service quality of banks operative in India

with regards to i-banking and identifying the important parameters crucial for

service quality from customer’s perspective. The study also explores the

importance of parameters across the demographic profile of the respondents.

Miranda-Petronella, Vlad (2009)174 have stated that E-banking is the first

of those banking services that really economize time, because it allows to the

user accomplish from behind the computer any operations in the bank account,

represents the computational solution that allows to the holder to have access at

distance at the capitals from his account, purposing to obtain information about

his account situation and the situation of the effected operations, of the payment

and of the capitals transfers over a beneficiary, by a computational application, of

a authentication method and of a communicational average, the e-banking is

absolutely necessary in the integration conditions.

Mattila and Mattila (2005)175 claimed that security has been widely

recognized as one of the main barriers to the adoption of internet is dependent

173 Malhotra,, P & Singh, B., “The Impact of Internet Banking on Bank Performance and Risk: The Indian Experience,” Eurasian Journal of Business and Economics, vol. 2, no. 4, pp. 43-62, 2009. 174 Miranda-Petronella, E-banking-Modern Banking Services, Economic Science Series, 2009, Vol. 18 Issue 4, p1093-1096. 175 Mattila, A. and Mattila, M. 2005. How perceived security appears in the commercialisation of internet banking, Int. J. Financial Services Management, Vol, No 1,pp 23-34.

72

upon the availability of internet service and interestingly on a number of several

other social and psychological factors as well.

Mathew Joseph, George Stone, (2003)176 The installment of customer

friendly technology (such as menu driven automated teller machines, telephone

and Internet banking services) as a means of delivering traditional banking

services has become commonplace in recent years as a way of maintaining

customer loyalty and increasing market share. Traditional brick and mortar banks

are using technology to meet the competitive challenge posed by online banks,

as well as a method of reducing the cost of providing services that were once

delivered exclusively by bank personnel. The present research investigates some

of the various roles technology plays in the US banking sector and how

technology in general impacts the delivery of banking service.

Mathew Joseph, Yasmin Sekhon, George Stone, Julie Tinson, (2005)177 The current exploratory study is an attempt to discover the underlying

areas of dissatisfaction associated with the banking experience in the UK,

particularly as it relates to the implementation of new service delivery technology

in the banking industry. The importance-performance grid demonstrates that two of the factors and their underlying attributes fall into the “Keep up the good work”

quadrant and the other two factors fall into the “Low priority” quadrant. The first

two are areas the organization needs to allocate resources in order to maintain

the level of service they provide their clients. From a strategic point of view, this

grid provides a tool for strategy development as it gives a clear picture of the

factors that are critical for resource allocation.

176 Mathew Joseph, George Stone, “An empirical evaluation of US bank customer perceptions of the impact of technology on service delivery in the banking sector” International journal of Retail & Distribution management, vol.31, issue 4,2003. 177 Mathew joseph, Yasmin Sekhon, George Stone, Julie Tinson, “An exploratory study on the use of banking technology in the UK: A ranking of importance of selected technology on consumer perception of service delivery performance”, International Journal of bank marketing, Vol.23, Iss: 5, pp 397-413.

73

Mittal, R.K. & Dhingra, S. (2007)178 studied the role of technology in

banking sector. They analyzed investment scenario in technology in Indian banks

but this study was related to the time period before the Information Technology

Act and at that time technology in Indian banks was very low. But both the

researchers nicely presented their views.

Michel Rod, Nicholas J. Ashill, Jinyi Shao, Janet Carruthers, (2009)179 examine the relationships among three dimensions of service quality that

influence overall internet banking service quality and its subsequent effect on

customer satisfaction in a New Zealand banking context. The results show

significant relationships among online customer service quality, online

information system quality, banking service product quality, overall internet

banking service quality and customer satisfaction.

Mavri, M & Ioannou, G(2006)180 IB is the latest in the series of

technological wonders of the recent past. ATMs, Tele-Banking, Internet Banking,

Credit Cards and Debit Cards have emerged as effective delivery channels for

traditional banking products. Banks know that the Internet opens up new

horizons for them and moves them from local to global frontiers

Mahdi Salehi, Alipour,Mehrdad,(2010)181 have stated “Now a day’s due

to emerging global economy, e-commerce and e-business have increasingly

become a necessary component of business strategy and a strong catalyst for

economic development. The new information technology is becoming an

important factor in the future development of financial services industry, and

especially banking industry. The results of this study shows that e-banking

178 Mittal, R.K. & Sanjay (2007), “Technology in Banking Sector: Issues and Challenges”, Vinimaya, Vol. XXVII, No. 4, (Jan – March), pp. 14 – 22. 179 Michel Rod, Nicholas J. Ashill, Jinyi Shao, Janet Carruthers, (2009) "An examination of the relationship between service quality dimensions, overall internet banking service quality and customer satisfaction: A New Zealand study", Marketing Intelligence & Planning, Vol. 27 Iss: 1, pp.103 – 126. 180 Mavri, M & Ioannou, G., “Consumers’ Perspectives on Online Banking Services,” International Journal of Consumer Studies, vol. 30, no. 6, pp. 552-560, 2006. 181 Mahdi Salehi, Alipour, Mehrdad, “E-banking in Emerging economy: Empirical evidence of Iran”, International Journal of economic and finance, February 2010, vol.2, issue 1, pg 201-209.

74

serves several advantages to Iranian banking sector, however, the study also

shows that the Iranian customers have not enough knowledge regarding e-

banking which is rendering by banking sector in Iran.

Mark Durkin, (2007)182 reports the findings of the latest, quantitative

phase of a continuing study that explores the impact of the internet on bank-

customer relationships. The specific aim is to shed light on customers' own views

about when, how and in which circumstances personal contact with bank staff

remains appropriate despite developments in online banking. Motivating and

inhibiting influences on interaction with bank staff are identified.

Mary Loonam, Deirdre O’Loughlin, (2008)183 in this paper is to explore

the emergence of self-service banking technology and investigates customers’

perceptions of internet banking self-service within the Irish financial services

sector. This qualitative study the Irish retail banking sector explored consumers’

e-banking interactions and experiences in addition to assessing the dimensions

critical to e-banking service quality. Malhotra,, P & Singh, B, (2009)184 The financial products and services

have become available over the Internet, which has thus become an important

distribution channel for a number of banks. Banks boost technology investment

spending strongly to address revenue, cost and competitiveness concerns. The

purpose of present study is to analyze such effects of IB in India, where no

rigorous attempts have been undertaken to understand this aspect of the banking

business.

182 Mark Durkin, "On the role of bank staff in online customer purchase”, Marketing Intelligence & Planning, Vol.25, Iss:1/2007, pp 82-97. 183 Mary Loonam,Deirdre O’Loughlin,(2008), “Exploring e-service quality, a study of Irish online banking”, Marketing Intelligence & planning, Vol.26, issue.7, pp.759-780. 184 Malhotra,, P & Singh, B., “The Impact of Internet Banking on Bank Performance and Risk: The Indian Experience,” Eurasian Journal of Business and Economics, vol. 2, no. 4, pp. 43-62, 2009.

75

Mahapatra, Khan, M.S S.S. and Sreekumar (2009)185 This study aims at

evaluating the service quality of internet banking (i-banking) services in India

from customer’s perspective. A structured questionnaire containing 44 quality

items is administered to various target groups. Seven quality dimensions, viz.

reliability, accessibility, user friendliness, privacy/security, efficiency,

responsiveness and fulfilment, are identified based on principal component factor

analysis. Demographic analysis of data reveals that gender is hardly a bias for

use and evaluation of service quality of i-banking in most of the cases across

various categories of customers. A valid mathematical model is proposed to

assess the overall service quality using regression analysis. The results show

that customers are satisfied with quality of service on four dimensions such as

reliability, accessibility, privacy/security, responsiveness and fulfillment, but least

satisfied with the ‘user-friendliness’ dimension. The empirical findings not only

prioritize different parameters but also provide guidelines to bankers to focus on

the parameters on which they need to improve.

Milind Sathye 1997186 The article reviews the present status of Internet

Banking in Australia. It begins with the findings of the Wallis Committee on

Internet Banking and then examines the present status with respect to the banks

on the net, the services they provide, difficulties the customers face and remedial

actions necessary on the part of banks. The article concludes with the

observations that Australian banks are lagging behind their counterparts in

US,Europe and Japan in providing banking services on the Internet and calls for

serious effort by banks, computer specialists, academicians and others to

popularize this upcoming area if banking is not to look medieval in Australia when

compared to World standards.

185 Khan, M.S., Mahapatra, S.S. and Sreekumar (2009) ‘Service quality evaluation in internet banking: an empirical study in India’, Int. J. Indian Culture and Business Management, Vol. 2, No. 1, pp.30–46. 186 Milind Sathye 1997, Internet Banking in Australia, Journal of Internet Banking and Commerce, Vol. 2 No. 4, September 1997.

76

Mols, (1998)187 It is totally possible for customers to manage their banking

transactions whenever they want and to enjoy improved privacy in their

interactions with the bank. In addition, customers can enjoy more benefits at

lower cost levels by utilizing e-banking.

Mols (2000)188 contend that internet banking may bring a dramatic

transformation in the way banks build and maintain close relationships with

customers. It is therefore crucial for banks to recognize the importance of

improving internet banking services so as to ensure that existing customers are

receiving the adequate and desired level of internet services and to attract

potential customers.

Mohammed Sadique Khan and Siba Sankar Mahapatra, Sreekumar , (2009)189 This study aims at evaluating the service quality of internet banking (i-

banking) services in India from customer’s perspective. A structured

questionnaire containing 44 quality items is administered to various target

groups. Seven quality dimensions, viz. reliability, accessibility, user friendliness,

privacy/security, efficiency, responsiveness and fulfillment, are identified based

on principal component factor analysis. Demographic analysis of data reveals

that gender is hardly a bias for use and evaluation of service quality of i-banking

in most of the cases across various categories of customers. A valid

mathematical model is proposed to assess the overall service quality using

regression analysis. The results show that customers are satisfied with quality of

service on four dimensions such as reliability, accessibility, privacy/security,

responsiveness and fulfillment, but least satisfied with the ‘user-friendliness’

dimension. The empirical findings not only prioritize different parameters but also

187 Mols, K. 1998. The behavior consequences of PC banking. International Journal of Bank Marketing, 16(5): 195 – 201. 188 Mols, N.P. (2000), “The Internet and services marketing – the case of Danish retail banking”, Internet Research: Electronic Networking Applications and Policy, Vol. 10(1), p. 7-18. 189 Mohammed Sadique Khan and Siba Sankar Mahapatra, Sreekumar, (2009) ‘Service quality evaluation in internet banking: an empirical study in India’, Int. Journal Indian Culture and Business Management, Vol. 2, No. 1, pp.30–46.

77

provide guidelines to bankers to focus on the parameters on which they need to

improve.

Ming-te Lu, Chun-hong, Liu, Jiang Jing, Linjun Huang, (2005)190

assess to what Chinese domestic banks’ use of internet banking as a strategic

response to the entrance of the WTO is affected by factors both external and

internal to the banks.

Myria Ioannou, Judy Zolkiewski, (2009)191 The intangible nature of

banking services enables financial institutions to deliver them through electronic

channels. In addition, the interactive and continuous nature of banking services is

conducive to relationship development. It would, therefore, be beneficial for the

dyad to build exchange relationships online. This exploratory research

investigates the effect of e-banking on the development of retail relationships in

Cyprus.

Nafis Alam, Murali Raman, (2010)192 Innovations in Information

technology have changed the way financial transactions are done in banking

industry globally. Banks perceive online banking as a powerful ‘value-added’ tool

to attract and retain new customers while helping to eliminate costly paper

handling and teller interactions. Online banking has managed to provide

customers the convenience, efficiency, effectiveness, and most importantly, the

speed needed in today’s dynamic world. As more banks around the world are

offering online banking to its customers, it is becoming a rather popular trend.

Online banking is an asset both to the bank and the customer. However,

countries like Sudan are yet to join the frenzy of this new innovation in an

190 Ming-te Lu, Chun-hong, Liu, Jiang Jing, Linjun Huang,“Internet banking: strategic responses to the accession of WTO by Chinese bank”, Industrial Management &data-Systems,2005,vol-105,issue-4. 191 Myriad loannou, Judy Zolkiewski, “Can retail bank-client relationships be developed online?”, EuroMed Journal of Business, Vol.4, Iss. 3,/2009, pp 254-269. 192 Nafis Alam, Murali Raman, (2010) Challenges Faced by Sudanese Banks in Implementing Online Banking: Bankers’ Perception Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2.

78

effective manner. This paper will investigate what are the challenges faced by

Sudanese banks in implementing online banking.

Ndubisi and Sinti (2006)193 examine the determinant structure of

customer attitude on adoption of IB in Malaysia. They show the “attitudinal

factors” play a significant role in IB adoption. In addition, IB adoption can predict

by behavioral tendency and webpage features. According to this study, easy-to-

use technologies and trial ability should be put in place in order to increase

adoption. Moreover, risk has no significant influence of adoptions

Norazah Mohd Suki,(2010)194 This paper examines factors that influence

the Internet banking adoption among Malaysian consumers. The study sample

consists of 100 respondents. The results shows that Hedonic oriented Internet

banking sites, followed by the perceived Importance of Internet banking to

banking needs and Compatibility all significantly affect the adoption of Internet

banking by Malaysian consumers. Trial ability has the weakest influence for

consumer Internet banking adoption beside Complexity, Risk, and Utilitarian

oriented Internet banking sites. The empirical data used for this study was

collected in Malaysia market which may have a culturally and technologically

different environment from some other countries. This paper makes a

contribution to Internet banking literature by providing insights on the factors that

affect Internet banking adoption. The results hint that information about Internet

banking services and its benefits is a critical factor influencing the adoption. The

findings made a contribution in terms of understanding the factors that can

contribute to the adoption of Internet banking by Malaysian consumers.

Norizan Mohd Kassim, Abdel Kader Mohammed Ahmed Abdulla, (2006)195 This research in this paper aims to investigate and extend the trust-

193 Ndubisi Nelson Oly, Sinti, Queenie (2006). “Consumer Attitudes, System’s Characteristics and Internet Banking Adoption in Malaysia”, Management Research News, 29 (1/2): 16-27. 194 Norazah Mohd Suki,(2010) An Empirical Study of Factors Affecting the Internet Banking Adoption among Malaysian Consumers’. Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2. 195 Norizan Mohd Kassim, Abdel Kader Mohammed Ahmed Abdulla, (2006).

79

relationship commitment model to an internet banking setting by adding attraction

as a new factor. The findings in the paper indicate that both trust and attraction

have significant positive impact on relationship commitment with attraction having

a strong positive effect, with communication representing the most important

determinant of attraction and having a significant positive relationship with both

trust and attraction. The paper shows that, from the managerial perspective, it is

necessary for bankers and policy makers to know the relationship between trust

and attraction because their influence on the actual commitment is different.

Nour-Mohammad Yaghoubi and Ebrahim Bahmani 2010196 Online

banking has emerged as one of the most profitable e-commerce applications

over the last decade. This study investigates which factors affect the adoption of

online banking in Isfahan Province of Iran. The results indicated that the intention

to use online banking is positively affected mainly by perceived behavioral control

and perceived usefulness.

Nelson Oly Ndubisi, Queenie Sinti, (2006)197 This paper examines the

determinant structure of customers’ attitude system's characteristics on adoption

of internet banking (IB) by Malaysian bank customers. The results of the study

reveal that the attitudinal factors play a significant role in internet banking

adoption. Moreover, utilitarian orientation of the website rather than hedonic

orientation has significant influence on adoption

Ndubisi and Sinti, 2006198 Besides, the speed, product features

availability, and reasonable service fees and charges, as well as the bank’s

operations management factor are critical to the success of the e-banks. WAP,

GPRS and 3G features from mobile devices are of no significance or influence in

196 Nour-Mohammad Yaghoubi and Ebrahim Bahmani, Factors Affecting the Adoption of Online Banking: An Integration of Technology Acceptance Model and Theory of Planned Behavior, Pakistan Journal of Social Sciences Year: 2010, Volume: 7, Issue: 3,Page No.: 231-236. 197 Nelson Oly Ndubisi, Queenie Sinti,(2006)"Consumer attitudes,system's characteristics and internet banking adoption in Malaysia", Management Research News, Vol. 29 Iss: 1/2, pp.16 – 27. 198 Ndubisi Nelson Oly, Sinti, Queenie (2006). “Consumer Attitudes, System’s Characteristics and Internet Banking Adoption in Malaysia”, Management Research News, 29 (1/2): 16-27.

80

the adoption of e-banking services in this study. Results also reveal that privacy;

security and convenience factors play an important role in determining the users’

acceptance of e-banking services with respect to different segmentation of age

group, education level and income level. Moreover, the exposure of internet

banking adoption in Malaysia is relatively lower and very little research has been

done to understand the key adoption determinants. Though, electronic revolution

has commenced in Malaysia a long ago, but Internet banking is still in its infancy

stage. So, it’s become very hard for the bank industry to design interventions that

would enhance the diffusion of Internet banking.

Nadim Jahangir and Noorjahan Begum,(2008)199 This research intends

to propose a conceptual framework that will investigate the effects of perceived

usefulness, ease of use, and security and privacy on customer adaptation

mediated through customer attitude in the context of e-banking. To test the

framework, structural equation modeling techniques have been applied to data

collected from 227 customers of private commercial banks in Bangladesh.

Primarily this study aims to test the theoretical models to measure the causality

whether perceived usefulness, ease of use, security and privacy, and customer

attitude can foster customer adaptation. The initial results of the study indicate

that perceived usefulness, ease of use, security and privacy, and customer

attitude are significantly and positively related to customer adaptation.

Implications for practicing managers and for future research are discussed.

Neha Dixit, Dr. Saroj K. Datta (2010)200 Internet banking is a form of self

service technology. The numbers of Internet users have increased dramatically,

but most of them are reluctant to provide sensitive personal information to

websites because they do not trust e-commerce security. This paper investigates

199 Nadim Jahangir and Noorjahan Begum, The role of perceived usefulness, perceived ease of use, security and privacy, and customer attitude to engender customer adaptation in the context of electronic banking, African Journal of Business Management Vol.2 (1), pp. 032-040, February, 2008. 200 Neha Dixit, Dr. Saroj K. Datta Acceptance of E-banking among Adult Customers: An Empirical Investigation in India Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2.

81

the factors which are affecting the acceptance of e-banking services among adult

customers and also indicates level of concern regarding security and privacy

issues in Indian context. The finding depicts many factors like security & privacy,

trust, innovativeness, familiarity, awareness level increase the acceptance of

ebanking services among Indian customers. The finding shows that in spite of

their security and privacy concern, adult customers are willing to adopt online

banking if banks provide him necessary guidance. Based on the results of

current study, Bank’s managers would segment the market on the basis of age

group and take their opinion and will provide them necessary guidance regarding

use of online banking.

Ong Hway-Boon, Cheng Ming Yu (2003)201 One of the most significant

implications of technological advances in the banking sector is the possibility of

delivering banking services through electronic channels (e-channels). E-channels

provide alternatives for faster delivery of banking services to a wider scope of

customers. However, prior to the implementation of e-channels, several factors

and investment costs must be identified to ensure a more cost effective and

efficient execution of e-channel services. The results of the survey suggested

that banks’ operation management is the main factor affecting the success of

ATMs, PC and branch banking, while product innovation and knowledge

development factors are found to have the most significant effect on the success

of banking kiosks and phone banking respectively.

Onkar Nath,(2000)202 has stated the need of RTGS in inter-bank(inter-

institutional) transfer of funds on a real time and gross basis. This system has

been considered to be an important one for enhancing the performance of level

of banking services. Ortega, BH, Martinez, JJ & Hoyos, JMD(2007) Internet is the

cheapest delivery channel for banking products as it allows the entity to reduce

201 Ong Hway-Boon, Cheng Ming Yu (2003) “Success factors in e-channels: the Malaysian banking scenario”, International Journal of Bank Marketing, Volume: 21, Issue:6, July 2003. 202 Onkar Nath,RTGS System(membership regulations), Bank Quest, April-June,2000, pg-34, Ortega, BH, Martinez, JJ & Hoyos, JMD., “An Analysis of Web Navigability in Spanish Internet Banking,” Journal of Internet Banking and Commerce, vol. 12, no. 3. 2007.

82

their branch networks and downsize the number of service staff. The navigability

of the website is a very important part of IB because it can become one of the

biggest competitive advantages of a financial entity

Patrick Ibbotson, Lucia Moran,(2003)203, Internal and external forces

continue to impact on the financial service sector, making it ever more difficult for

traditional banks both to retain their existing small to medium sized

enterprises(SME) client base, and to acquire new business clients. The

traditionally poor relationship between banks and their small corporate clients

has been well documented throughout the years; however, the increased use of

electronic banking channels by SME banking customers threatens to change the

very nature of that relationship. This paper examines the current nature of the

relationship between SMEs and their banks in Northern Ireland and investigates

the level of usage of and satisfaction with electronic banking channels in this

region.

Padmanaban G, 2005204 has stated that the banking in India has

undergone rapid transformation. The last two decades have witnessed a sea

change in the nature of services offered by banks which has a positive impact on

the customers of banks. Technology will be considered as an emerging tool for

providing the better customer service

Phan.D, (2003)205, In the study by IAMAI, it was found that the people are

not doing financial transactions on the banks’ Internet sites in India because of

reasons such as security concerns (43%), preference for face-to-face

transactions (39%), lack of knowledge about transferring online (22%), lack of

user friendliness (10%), or lack of the facility in the current bank (2%) .

203 Patrick Ibbotson, Lucia Moran,(2003), “E-banking and the SME bank relationship in Northern Ireland”, International Journal of Bank Marketing, vol.21, issue.2, pp 94-103. 204 Padmanaban G., chief manager in charge, Dept of Information Technology, Reserve bank in the Banknet-India’s bank Tech submit at Taj Lands Ends, Mumbai, on September 22, 2005. 205 Phan, D., “E-Business Development for Competitive Advantages: A Case Study, “ Information & Management, vol. 40, pp. 581–590, 2003.

83

Pathrose P.P, (2001),206 asserted that banking over the world is

undergoing a rapid and radical transformation due to the pervasive influence of

IT and breath taking developments in the technology of telecommunications and

electronic data processing. IT, which implies the integration of information system

with communication technology, has radically altered the traditional ways of

doing banking business and allowed banks to wipe out the difference in time as

well as distance. It is in this context that this article attempts to trace the present

status o hi-tech banking in India, visualize its prospects and look at the

challenges and problems. He concludes that in the face of severe competition

and escalating expectation of customer for newer products and alternative

delivery channels, the contours of banking are being redefined.

Petrus Guriting, Nelson Oly Ndubisi, (2006)207 "Adopting the technology

acceptance model, this research examines the factors that determine intention to

use online banking in Malaysia Borneo. Perceived ease of use and perceived

usefulness are the factors considered to be fundamental in determining the

acceptance and use of various information technologies. However, these beliefs

may not fully clarify behavioural intention towards newly emerging technologies,

such as online banking. The results indicate that perceived usefulness and

perceived ease of use are strong determinants of behavioural intention to adopt

online banking. There is also an indirect effect of computer self-efficacy and prior

general computing experience on behavioural intention through perceived

usefulness and perceived ease of use.

Pooja Malhotra, Balwinder Singh, (2010)208, This exploratory study is

an attempt to present the present status of internet banking in India and the

extent of internet banking services offered by internet banks. In addition, it seeks

to examine the factors affecting the extent of internet banking services. The

206 Pathrose p.p. in “Hi-tech banking prospects and problems, IBA bulletin, Vol.xxiii, No.7, July, 2001. 207 Petrus Guriting, Nelson Oly Ndubisi, (2006) "Borneo online banking: evaluating customer perceptions and behavioural intention", Management Research News, Vol. 29 Iss: 1/2, pp.6 – 15. 208 Pooja Malhotra, Balwinder Singh,(2010), “An analysis of internet banking offerings and its determinants in India”, Internet Research,2010, vol.20, issue 1, pp 887-106.

84

purpose of the study is to help fill significant gaps in knowledge about the internet

banking landscape in India. This paper contributes to the empirical literature on

diffusion of financial innovations, particularly internet banking, in a developing

country, i.e., India

Perumal .V & Shanmugan, 2004209, It provides universal connection from

any location worldwide and is universally accessible from any internet linked

computer Philip Gerrard, J. Barton Cunningham, (2003) " Internet banking is a

form of self-service technology, costing millions of dollars, which leading retail

banks have made available in the recent past. An understanding of why users

are more accepting of Internet banking services should help bank managers

implement this self-service technology. The results show that adopters of

Internet banking perceive the service to be more convenient, less complex, more

compatible to them and more suited to those who are PC proficient. Adopters

were also found to be more financially innovative. The perceptions that adopters

had about social desirability, confidentiality, accessibility and economic benefits

were viewed no differently when adopters were compared with non-adopters.

Pedro Cruz, Lineu Barretto Filgueiras Neto, Pablo Muñoz-Gallego, Tommi Laukkanen, (2010)210 The aim of this paper is to investigate the

perceived obstacles to the adoption of mobile banking services among Brazilian

internet users and search for patterns according to socio-demographics

variablesThe results indicate that the majority of respondents do not use any kind

of mobile banking service. Perception of cost, risk, low perceived relative

advantage and complexity were revealed to be the main reasons behind the

reluctance to use the service. The influence of other background factors is less

evident

209 Perumal, V & Shanmugan., “Internet Banking: Boone or Bane,” Journal of Internet Banking and Commerce, vol. 19, no. 3. 2004. 210 Pedro Cruz, Lineu Barretto Filgueiras Neto, Pablo Muñoz-Gallego, Tommi Laukkanen, (2010) "Mobile banking rollout in emerging markets: evidence from Brazil", International Journal of Bank Marketing, Vol. 28 Iss: 5, pp.342 – 371.

85

Pikkarainen, Karjaluoto, and Pahnila, (2004)211 defines internet banking

as an internet portal, through which customers can use different kinds of banking

services ranging from bill payment to making investments. Banks use online

banking as it is one of the cheapest delivery channels for banking products .With

the exception of cash withdrawals, internet banking gives customers access to

almost any type of banking transaction at the click of a mouse. Indeed the use of

the internet as a new alternative channel for the distribution of financial services

has become a competitive necessity instead of just a way to achieve competitive

advantage with the advent of globalization and fiercer competition

Polatoglu and Ekin (2001)212 have examined the level of adoption of the

IB in Turkey, and discussed the factors affecting its diffusion. This study reveals

that IB services not only reduce the operational costs of the banks, but also

increase the level of customer satisfaction. They clarifies that IB services have

added benefits in terms of customer attraction, and it may lead to higher

competition by bringing new products and alternative channel offerings..

Prabir K Biswas 2007213 Historically banks have been the major

intermediary between demand and supply of capital and the success of such

intermediation is closely linked to the trust built over the years between banks

and customers. With geographical expansion of banks in India together with

banking sector reforms, globalization and use of technology, banks have been

finding difficulty to adapt to the new competitive environment and customers

often find themselves in the receiving end of banks’ lack of customer service.

Customer service has also not improved due to lack of involvement on the parts

of the executives, officers, and other staff of the banks as exemplified by non-

deployment of resources and non-integrating customer service as part of banks’

211 Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. 2004. Consumer acceptance of online banking:An extension of the technology acceptance model. Internet Research, 14(3), 224–235. 212 Polatoglu V., Ekin S. (2001), An empirical investigation of the Turkish consumers’ acceptance of IB services, The International Journal of Bank Marketing 19 (4), pp. 156-165 no.2 213 Prabir K Biswas Know Your Customer or Know Your Bank? - April-June 2007 Vol. XXVIII No. 1, vinimaya archives.

86

place customer service audit and accountability at different levels as part of

banks’ integrated risk management framework

Qadar Bakhsh Baloach, M. Imran Khan, Adnan Alam, (2009)214 This

comparative study aims to provide a better understanding of how online banking

services between Islamic and conventional commercial banks are prevailing in

Pakistan. This purpose is achieved via one research question which focuses on

how the bank’s online services can be described. A multiple case study strategy

is used, focusing on two banks, one Islamic bank namely Meezan bank and other

conventional commercial bank namely Citibank of Pakistan. Data was collected

via observation and interaction with the websites, focusing on feedback from the

customers using the banking websites. In using these websites for their banking,

the findings show that the main benefits included lower costs, efficiency and time

saving retention and Islamic banks should concentrate more on professional and

technical skills. Websites should have clear and brief information in order to build

trust with the customer.

Qureshi, T, Zafar, M & Khan, M, 2008,215 User adoption of a technology

has become a crucial or significant measure of the success or effectiveness of

that technology. Revolutionary development in Information and Communication

Technology (ICT) in the past 20 years has impacted individuals as well as

businesses in a profound way. Technological innovations are having significant

importance in human general and professional life. This era can safely be

attributed as technology revolution. The quick expansion of information

technology has imbibed into the lives of millions of people. Rapid technology

advancements have introduced major changes in the worldwide economic and

business atmosphere.

214 Qadar Bakhsh Baloach, M. Imran Khan, Adnan Alam, A Comparative Study of Islamic and Conventional Banks of Pakistan, Journal of Managerial Sciences, 2009 Volume IV, Number 1 pg-69-93. 215 Qureshi, T, Zafar, M & Khan, M.,“Customer Acceptance of Online Banking in Developing Economies,” Journal of Internet Banking and Commerce, vol. 13, no.1. 2008.

87

Ratnasingam (2002)216 argued that the impact of technology trust in Web

services implies the use of security services such as digital signatures,

encryption mechanisms, and authorization mechanisms. This paper relates to the

condition of the consumers’ perceptions on security issues in E-banking. Mainly

consumers' perceptions are derived from the set of technologies that are

customarily visible to them over the Web

Rao et al. (2003)217 provide a theoretical analysis of Internet banking in

India and found that as compared to banks abroad, Indian banks offering online

services still have a long way to go. For online banking to reach a critical mass,

there has to be sufficient number of users and the sufficient infrastructure in

place. I.T. has introduced new business paradigms and is increasingly playing a

significant role in improving the services in the banking industry

Rajesh Kumar Srivastava (India) 2007218 Customer’s perception on

usage of internet banking Internet banking is still at infancy stage in the world.

Many studies focused on usage of internet banking but many factors on non-

usage were overlooked. This research was carried out to validate the conceptual

model of internet banking. The causes were identified and researched through

correcting the causative factors so that internet banking can be used by more

people. This will help the banking operations to be more cost effective. The

research is focused on what are the customer’s perceptions about internet

banking and what are the drivers that drive consumers. How consumers have

accepted internet banking and how to improve the usage rate were the focus of

research area in this study. The study revealed that education, gender, income

play an important role in usage of internet banking.

216 Ratnasingam Pauline (2002), “The Importance of Technology Trust in Web Services Security”, Information Management & Computer Security, 10 (5): 255-260. 217 Rao, G. R. and Prathima, K. (2003), Internet Banking in India, Mondaq Business Briefing, April 11. 218 Rajesh Kumar Srivastava (India), Innovative Marketing, Volume 3, Issue 4, 200.

88

Ramayah et al. (2002)219 suggest that users will eventually lose interest in

using Internet banking if they feel that it is not useful to use Internet banking even

though the system is rather easy to handle.

Redelinghuis, A. and Rensleigh, C., 2010220 South Africa has a well-

developed and established banking system which compares favourably with

those in many developed countries (e.g. USA), but also sets South Africa apart

from many other emerging market countries like Egypt and Brazil. Four dominant

banks, namely the Amalgamated Banks of South Africa (ABSA), Standard Bank,

Nedcor and First National Bank (FNB) influence the South African banking

environment. Internet banking has slowly been taking off in South Africa since

1996 as consumers are attracted to the convenience, safety and lower costs of

doing banking online. Trust is a significant component of Internet banking and

online services and products. It was established that the findings of this research

could assist financial institutions with fostering and building greater value adding

relationships with their customers.

Reeti Agarwal, Sanjay Rastogi and Ankit Mehrotra (2009)221

Determining factors affecting customer perception and attitude towards and

satisfaction with e-banking is an essential part of a bank's strategy formulation

process in an emerging economy like India. To gain this understanding in respect

of Indian customers, the study was conducted on respondents taken from the

northern part of India. The major findings depict that customers are influenced in

their usage of e-banking services by the kind of account they hold, their age and

profession, attach highest degree of usefulness to balance enquiry service

among e-banking services, consider security & trust most important in affecting

219 Ramayah T, Jantan Muhamad, Nasser Mohd, Noor Mohd (2002), Receptiveness of Internet Banking Malaysian Consumers, Universiti Sains Malaysia 220 Redelinghuis, A. & Rensleigh, C., 2010, ‘Customer perceptions on Internet banking information protection’, SA Journal of Information Management vol.12 issue .1 221 Reeti Agarwal, Sanjay Rastogi and Ankit Mehrotra, Customers’ perspectives regarding e-banking in an emerging economy journal of retailing and consumer services, vol.16,issue 5,, September 2009, Pages 340-351.

89

their satisfaction level and find slow transaction speed the most frequently faced

problem while using e-banking. Raechel Johns, Bruce Perrott, (2008)222 The purpose of this paper is to

show how technology has dramatically altered the way businesses operate in a

business-to-business (B2B) context and has had profound influences on

services, altering the way services are delivered. It is believed that the increased

use of self-service technologies (SSTs) impacts on B2B relationships. The paper

seeks to explore the impact of the use of internet banking on business

relationships.

Robert Hamilton, Paul Hewer, 2009223, Recent market research findings

and financial services consultants' reports have signalled that electronic

commerce will play an increasingly important role in consumers' future financial

lives. This paper discusses such evidence and seeks to contextualise the debate

on the future of banking through a discussion of consumers' financial behaviour,

the UK Government's position and an analysis of UK financial providers' current

marketing of Internet banking services to consumers.

Rao and Prathima (2003)224 provided a theoretical analysis of i-banking

in India, and found that as compared to the banks abroad, Indian banks offering

online services still have a long way to go. For online banking to reach a critical

mass, there has to be sufficient number of users and the sufficient infrastructure

in place.

Richard A.Feinbery(1986),225 had conducted four experiments and one

study to test the hypothesis that stimuli associated with spending can elicit

222 Raechel Johns, Bruce Perrott, (2008) "The impact of internet banking on business-customer relationships (are you being self-served?)", International Journal of Bank Marketing, Vol. 26 Iss: 7, pp.465 – 482 223 Robert Hamilton and Paul Hewer, Electronic commerce and the marketing of Internet banking in the UK Journal of Financial Services Marketing (2000) 5, 135–149. 224 Rao, G. R. and Prathima, K. (2003) ‘Internet Banking in India’, Mondaq Business Briefing, 11 April. 225 Richard A. Feinberg, credit card as spending Facilitation stimuli., A condition in Interpretation, Journal of consumer research, Vol.13, December 1989.

90

spending responses. The experiments and the study proved that credit card

stimuli directed spending such that the probability, speed or magnitude of

spending was enhanced in the presence of credit cards. The customer

protection bodies feel that the availability of credit cards particularly through

credit card has outstripped people’s ability to handle it. the money management

council, a charity which aims to help people handle their finance more effectively,

states that education is trailing far behind the development of consumer credit

and the transfer funds via the plastic card where as there has been an enormous

increase in it s usage.

Rupa Rege Nitsure,(2004)226, E-banking has the potential to transform

the banking business as it significantly lowers transaction and delivery costs.

This paper discusses some of the problems developing countries, which have a

low penetration of information and telecommunication technology, face in

realising the advantages of e-banking initiatives. Major concerns such as the

'digital divide' between the rich and poor, the different operational environments

for public and private sector banks, problems of security and authentication,

management and regulation, and inadequate financing of small and medium

scale enterprises (SMEs) are highlighted.

Dr. Saroj Upadhyay, Deblina Ganguly (2009)227 In today’s cut throat

competitive environment, the banks are making efforts to acquire new customers

and also trying to retain the existing ones. With increased number of banks,

products and services and with practically zero switching costs, customers are

easily switching banks. If they are not satisfied with the services offered by their

existing banks. Banks are finding it difficult to attract new customers, and more

importantly retain existing customers.

226 Rupa Rege Nitsure,(2004) “E banking Challenges and Opportunities “, Economic and Political Weekly, vol.38, no.51/52, December –January 2004, pp 5377-5381. pg-348-356. 227 Dr.Saroj upadhyay, Deblina Ganguly. Developing CRM Philosophy in banks. Professional bankers- The Icfai University press. Vol ix, issue 7 July 2009].

91

K. Saikrishna (2009)228 This article discusses the innovations in

information technology being used in the Indian banking system. The advent of

technology in banking has widened the scope for entry in the new markets and

has helped the banks to develop innovative products, services and effective

delivery channels.

N Sakthivel & P Murugeshwari, 2009229 In the ever-changing scenario,

banks have evinced keen interest in delivering value-added products and

services with the help of rapidly evolving electronic and telecommunication

technologies. Internet banking is a web-based service that allows customers to

access their account information. In this system, customers are allowed to log on

to the bank's website with the help of identification issued by the bank and a

Personal Identification Number (PIN). Often, the range of products and services

offered by each bank on internet varies widely in terms of content. It is observed

that internet banking is offered as a value-added service by most of the banks, in

particular, by banks which do not have a large branch network. The present

study is an attempt to analyze the customers' attitude towards internet banking

services of ICICI Bank at Gobichettipalayam

Sayar and Wolfe (2007)230 compare the IB services in the UK and

Turkey. They reveal that Turkish banks offer a wider range of web services

compared to British banks, despite the fact that the UK has a more favorable

environment for IB in terms of its banking sector and technological infrastructure.

There is a conceptual difference regarding the security issues between British

and Turkish banks. Turkish banks use technology to avoid fraud, whereas the

British banks prefer more conventional methods.

228 K.Saikrishna Leveraging IT for better banking services by. Pg.44, professional banker, August 2009. 229 N Sakthivel & P Murugeshwari Customers' Attitude Towards Internet Banking : A Study with Reference to ICICI Bank, oct-dec 2009.volxxx no 3,vinimaya archives. 230 Sayar C. and Wolfe S. (2007), Internet banking market performance: Turkey versus the UK, International Journal of Bank Marketing v0l. 25,issue .3, pp. 122-141.August 2007.

92

Salim Al-Hajri and Arthur Tatnall 2007231 To fully benefit from moving to

new national economies an up-to-date banking industry is important, but Omani

banks continue to conduct most of their banking transactions using traditional

methods. This paper reports on research to investigate inhibitors and enablers of

Internet banking in Oman, comparing this to the situation in Australia. Data was

collected from interviews with bank managers in each country, based on a

consideration of each bank manager’s perceptions of four factors that might

affect their decisions to adopt, or not adopt Internet technologies: Relative

Advantage, Organizational Performance, Customer/ Organizational Relationship

and Ease of Use. It is hoped that the results will be useful in seeing why Omani

banks have been slow to adopt Internet technology and to encourage them to

make the change. By utilizing e-banking, it is very convenient for consumers to

get the access to their banks and accounts to implement their banking

transactions. At its sophisticated sense, e-banking is named transactional online

banking due to the fact that it embeds in the provision of facilities, such as

accessing accounts, transfer of funds, and buying financial products or services

online (Sathye, 1999)232. In this paper, without the loss of generality, the term e-

banking and online banking (or even Internet banking) are interchangeably

utilized with the same meaning.

Sharma and kaur (2004)233 studied customer satisfaction in rural banks.

This study is concerned with Hoshiarpur district of Punjab. They used five-point

likert scale and found that the rural customers are not satisfied with the strategies

adopted by Gramin Bank.

231 Salim Al-Hajri* and Arthur Tatnall, (2007), Inhibitors and Enablers to Internet Banking in Oman - A Comparison with Banks in Australia. 232 Sathye, M. 1999. Adoption of Internet Banking by Australian Consumers: an empirical investigation International Journal of Bank Marketing, 17(7): 324 – 334. 233 Sharma R D and Kaur G(2004), “Strategy for customer satisfaction in Rural banks- A case study of Shivalik Kshetriya Gramin Bank, Hoshiarpur”, Prajnan, Vol.XXXIII, No.1(April-June), pp.23-45.

93

Shastri (2001)234 analyzed the effect and challenges of new technology

for banks. Technology has brought a sea change in the functioning of banks.

The earlier manual system of preparation of vouchers is slowly being automated

thereby saving a lot of time and effort. The use of automated teller machines

(ATMs) and introduction of IT are more than in the past.

Shanti (1984)235 made a pioneering attempt to examine the issues

relating to delivery of customer services in Indian banks as against the backdrop

of a sound conceptual framework. She has provided an empirical analysis of

bank employers’ job behavior and its relationship with bank services delivery.

She has found that lack of job motivation, lack of freedom at branch level, lack of

leadership qualities among bank managers, job security, etc., have resulted tin

poor quality customer services in Indian banks.

D. Sharma, 2009236, Until the advent of ATMs, people were unaware

and/or not directly affected by the technological revolutions happening in the

banking sector. ATMs became the major revelation for customers, since it offered

the facility to avoid long queues in front of the cashiers in banks. It also provided

them the flexibility of withdrawing money- anytime, anywhere.

Santos (2003)237 emphasizes that e-channels enable consumers to

compare offers online, and hence online consumers would expect the same or

even higher levels of service quality

Suganthi et al. (2001)238 conducted the review of Malaysian banking

sites and revealed that all domestic banks were having a web presence. Only 4

of the ten major banks had transactional sites. The remaining sites were at

234 Shastri R V (2001), “Technology for Banks in India-Challenges”, IBA Bulletin, Vol. XXIII, No.3 (March) pp.23-45]. 235 Shanti S (1984), Customer Services in Banks, Himalaya Publishing House, and Bombay. 236 Sharma, D., “India’s Leapfrogging Steps from Bricks-and-Mortar to Virtual Banking: Prospects and Perils,” The IUP Journal of Management Research, vol. 8, no. 3, pp. 45-61, 2009. 237 Santos J. (2003), E-Service quality: a model of virtual service quality dimension, Managing Ser vice Quality 13 (3), 233-246. 238 Suganthi, Balachander and Balachandran (2001), “Internet Banking Patronage: An Empirical Investigation of Malaysia,” Journal of Internet Banking and Commerce, Vol.6, No.1, May.

94

informational level. There are various psychological and behavioral issues such

as trust, security of Internet transactions, reluctance to change and preference

for human interface which appear to impede the growth of Internet banking

Sharma R C and Singh J,(1993)239 analyzed the quality of customer

services produced by Standard Chartered Bank (SCB) and Punjab National

Bank(PBN). They concluded that the quality of customer services of PNB branch

is very poor in comparison to SCB branch. But the main limitation of study is that

it is related to two banks only.

Singh R and Malhotra A (1993)240, analyzed customer satisfaction in

banking services in Amritsar city. They concluded that public sector banks

should improve their services to attract new customers. Bank management

should prepare a list of existing and prospective customers and carryout detailed

studies on customer satisfaction in order to improve their services. Siva Rama Prasad.P. (2004)241 in his article has stated that “Commercial

banks generally install their ATM in urban area only. They refuse to install the

ATMs at rural and semi urban areas. This system has to be changed. The rural

population also gets the benefit of ATMs and other related new services. If

agriculturist borrowers are provided access to networked ATMs, their needs can

be met effectively. Hence, the Indian banking sector has to think about installing

or providing the advanced services into rural and semi urban areas.

Siriluck Rotchanakitunmnuai, Mark Speece,(2003)242, Many Thai

Banks are currently implementing internet banking. Banks that offer service via 239 Sharma R C and Singh J in “quality of customer services in banks, A comparative study of SCB and PNB”, Radha Publication, New Delhi 1993. 240 Singh R and Malhotra A (1993), in “Customer satisfaction in banking services: A study of Amritsar”, Radha Publication, New Delhi. 241.Siva Rama Prasad.P, Product Innovation. A suggestion from Reader, KCC vs ATM, Bank

Quest, April-June 2004,pg-30] . 242 Siriluck Rotchanakitunmnuai, Mark Speece,(2003) “Barriers to Internet banking adoption : a qualitative study among corporate customers in Thailand”, international journal of Bank marketing, Vol. 21 issue 6, July 2003.

95

this channel claim that it reduces costs and makes them more competitive.

However, many corporate customers are not highly enthusiastic about internet

banking. An understanding of why corporate customers do not accept internet

banking can assists banks to implement this self-service technology more

efficiently. Those already using Internet banking seem to have more confidence

that the system is reliable, whereas non-users are much more service conscious,

and do not trust financial transactions made via Internet channels. Non-Internet

banking users tend to have more negative management attitudes toward

adoption and are more likely to claim lack of resources. Legal support is also a

major barrier to Internet banking adoption for corporate customers

Stafford, 2004243 Recent research also suggests that increased use of

online banking and bill paying can actually decrease the occurrence of identity

theft by taking personal information outside the mailbox and eliminating a paper

trail.

Sourabh Sharma & K S Thakur, 2010244 This paper is a survey of public

and private sector bank customers' responses toward computerization of banking

services. The objective of this paper is to measure the customers' awareness,

perception, and the level of satisfaction with regard to Virtual Banking Services

offered by the Indian public and private sector banks in the city of Jaipur. This

survey declares that in comparison, private sector bank customers are satisfied

with regard to ATM, I-Banking and IVRS services. However, the study also

reveals that public sector banks are preparing to take on private sector banks in

this regard.

Serkan Akinci, Safak Aksoy, Eda Atilgan,(2004)245 “This descriptive

study was conducted to develop an understanding of consumers' attitudes and 243 Stafford, M.R. (2004) ‘Identity theft: laws, crimes, and victims’, Journal of Consumer Affairs, Vol. 38, No. 2, pp.201–203. 244 Sourabh Sharma & K S Thakur, A Comparative Study of Customer Satisfaction from Virtual Banking in Public and Private Sector Banks April-june 2010, vol.xxxi, no 1, Vinimaya archives. 245 Serkan Akinci, Safak Aksoy, Eda Atilgan, “Adoption of internet banking among sophisticated consumer segments in an advanced developing country”, International journal of bank marketing, vol. 22, issue 3, 2004.

96

adoption of Internet banking among sophisticated consumers. The analyses

revealed significant differences between the demographic profiles and attitudes

of users and non-users. IB users were further investigated, and three sub-

segments were defined according to a set of bank se lection criteria. Finally,

based on the similarities between various Web-based bank services, four

homogeneous categories of services were defined.

M. Sadiq Sohail, Nassar M Shaikh,(2008)246, the purpose of this paper is

to measure the quality of service from customers perspective. With an enormous

growth in internet banking, this paper discusses how banks can be competitive

by providing quality services. Based on the review of literature, the paper uses

empirical research to analyze service quality of internet banking services

provided by banks in Saudi Arabia.

Sultan Singh, Ms. Komal,2009247 This paper presents the impact of ATM

on customer satisfaction. This is a comparative study of three major banks i.e.

State Bank of India, ICICI bank and HDFC bank. This paper has been divided

into two sections. First section presents the introduction of ATM, brief history of

three Banks compiled through the literature available in the field. It also includes

the review of the various services provided by the three banks under study.

Second section presents the result obtained on the basis of the data collected for

the three banks.

Sylvie Laforet, Xiaoyan Li, (2005)248 The aim of this study is to

investigate the market status for online/mobile banking in China. With the recent

and forecasted high growth of Chinese electronic banking, it has the potential to

develop into a world-scale internet economy and requires examination. The issue

of security was found to be the most important factor that motivated Chinese

246 M.Sadiq Sohail, Nassar M Shaikh, “ Internet banking and quality of service : perspectives from a developing nation in the middle east,”. Online information review, vol.32, issue.1,2008. 247 Sultan Singh, Ms. Komal, Impact of Atm On Customer Satisfaction (A Comparative Study of SBI, ICICI & HDFC bank) Business Intelligence Journal - August, 2009 Vol. 2 No. 2. 248 Sylvie Laforet, Xiaoyan Li, (2005) "Consumers’ attitudes towards online and mobile banking in China", International Journal of Bank Marketing, Vol. 23 Iss: 5, pp.362 – 380.

97

consumer adoption of online banking. Main barriers to online banking were the

perception of risks, computer and technological skills and Chinese traditional

cash-carry banking culture. The barriers to mobile banking adoption were lack of

awareness and understanding of the benefits provided by mobile banking.

Dr. D. Subbarao, 2009249 The volume of transactions through National

Electronic Clearing Service [NECS] introduced in September 2008 is also

increasing. As on March 31, 2009 the NFS [The National Financial Switch]

network covered a total of 38714 automated teller machines [ATMs] of 34 banks.

On an average, a daily volume of 890180 transactions [of which 256156

transactions pertained to balance enquiry and 634024 pertained to cash

withdrawal] were routed through the NFS in March 2009 as against a daily

volume of 267598 transactions in March 2008. since April 1, 2009 customers

have the facility of using ATM of any bank for cash withdrawal free of cost

thereby making ATMs national payment outlets

Sohail, M..S. and Shaikh N. (2008)250.With an enormous growth in

Internet banking, this paper discusses how banks can be competitive by

providing quality services. This paper measures the quality of service from

customers’ perspective. Results based on a factor analysis identify three factors

that influence users’ evaluation of service quality of Internet banking services.

These factors are labeled as ‘efficiency and security’, ‘fulfillment’ and

‘responsiveness’.

Shastri, R.V.(2000)251, studied the emergence of IT in banking sector. He

highlighted some challenges faced by banks regarding IT implementation. This

paper also highlighted future outlook of IT oriented banks.

249 Dr.D.Subbarao, Governor. RBI monthly bulletin, Monetary policy statement 2009-10. May 2009, Pg 723. 250 Sohail, M..S. and Shaikh N. (2008). ‘Internet Banking and quality of service: Perspectives from a developing nation in the Middle East’ Online Information Review, Vol. 32, No. 1. 251 Shastri R V (2001), “Technology for Banks in India-Challenges”, IBA Bulletin, Vol. XXIII, No.3 (March) pp.23-45]

98

Stuart J Barnes and Brian Corbitt (2003)252 The internet and the mobile

phone - two technological advancements that have profoundly affected human

behaviour in the last decade - have started to converge. The products of this

association are mobile data services. Using a variety of platforms, services are

being created to enable mobile devices to perform many activities of the

traditional internet, albeit in a reduced format for mobile devices. One area of

activity is mobile (m-) banking (one of the first areas of commercial transaction on

the wireless internet). Banking is an area that has extended in many different

ways in recent years, including telephone and online banking. M-banking

provides yet another channel for banking services, and in emerging markets,

provides some possibility for becoming a primary channel. This paper examines

the strategic implications of m-banking and the strategic positioning of m-banking

services in different markets. The paper concludes with a discussion of the future

for m-banking services.

Sinkey 1998253 The use of internet technology has a direct relationship

with the profitability of the bank. The banks which invest in e-banking tend to

raise their profit margins by reducing costs and increasing the not-interest

incomes which in turn will increase the return on assets and return on equity.-

Syed Shah Alam, Ali Khatibi, A. Solucis Santhapparaj, Mohammad

Talha, (2007)254 The goal of this paper is to examine the development and

prospects of internet banking in Bangladesh, which found that lack of

infrastructure is the major issues for internet banking. . Compared to private and

foreign banks, nationalized commercial banks are far behind implementing

internet banking system in banking transactions.. This paper outlines the key

internet banking trends and events in Bangladesh. Further, the research focuses 252 Stuart J. Barnes and Brian Corbitt Mobile banking: concept and potential, International journal of Mobile communications. Vol.1, no.3/2003, pg 273-288. 253 Sinkey 1998, professional bankers– the Icfai University press. September 2009. Vol. ix, issue 9. 254 Syed Shah Alam, Ali Khatibi, A. Solucis Santhapparaj, Mohammad Talha, (2007) "Development and prospects of internet banking in Bangladesh", Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness, Vol. 17 Iss: 1/2, pp.56 – 66

99

on the issues that are related to internet banking and provides strategy and

directions for the development of internet banking in Bangladesh. Sciglimpaglia, D.Ely, (2002),255 many financial institutions are actively

developing new electronic banking products for their retail customers. These

efforts can succeed only if their managers focus the promotion of the new

services toward those customers who are most likely to find them attractive. The

analysis of a 6-branch financial institution presented in this study suggests that

instructions are vulnerable to loss of customers to rivals with extensive online

services. The likelihood of current customers being tempted to do business

online with another institution was shown to increase with the level of customer

transaction use on the internet. Current customer account relationships are

found to be predictive of electronic services use in general. And, interest in the

use of specific online services is related to differing customer relationships in

addition to ordinary demographic and balance information. These findings can

be useful in identifying potential users from a customer relationship management

perspective.

Steve Worthington (2003)256 the article is based on both secondary and

primary research into the use of plastic payment cards in China. The secondary

research offers an understanding of the history and current situation of payment

cards in China. Whilst the primary research provides insights into the uniqueness

of the Chinese market from the perspective of the cardholders, card issuers and

merchant acceptors. As barriers to entry into China remain high for foreign

banks, particularly if they wish to pursue a branch centric approach to

distribution, the article also draws attention to the advantages of a card centric

approach to market entry. Other Asia-Pacific markets such as Australia, Hong

255 D. Sciglimpaglia, D. Ely, "Internet Banking: A Customer-Centric Perspective," HICSS, vol. 7, pp.186, 35th Annual Hawaii International Conference on System Sciences (HICSS'02)-Volume 7, 2002 256 Steve Worthington, (2003) "The Chinese payment card market: an exploratory study", International Journal of Bank Marketing, Vol. 21 Iss: 6/7, pp.324 – 334.

100

Kong ,Korea and Japan have already embraced the plastic card as a means of

payment at the point-of –sale.

Shetty, V.P. (2000),257 technology is dramatically altering the ways in

which financial services are delivered to consumers and continue to do so in

future too. Electronic banking or the use of computers and electronic technology

as a substitute for traditional paper based transactions, is here to stay.

Sven C. Berger, (2009)258 "This article aims to explain the adoption of

self-service technology with pro-active sales applications (automated teller

machines or kiosk systems) in brick-and-mortar outlets with special respect to

personality traits, relationship characteristics and previous online banking usage.

The study validates the framework and identifies relevant moderating effects.

Strauss and Corbin, 1990.259 On searching the literature on internet

banking, we found several motivations for a fresh investigation of the key factors

influencing banking consumer adoption of the internet channel. First, existing

studies are largely based on surveys that, as positivist approaches, are unable to

uncover the deeper issues identified by interpretive methods, or the real issues

that emerge from grounding the research in data

Thulani, D, Tofara, C & Langton, R.2009,260 IB refers to systems that

enable bank customers to get access to their accounts and general information

on bank products and services through the use of bank’s website, without the

intervention or inconvenience of sending letters, faxes, original signatures and

telephone confirmations

257 Shetty, V.P. (2000), “E-Banking”, IBA Bulletin, Vol. XXI, No.3 (March Special Issue), pp. 31-34. 258 Sven C. Berger, (2009) "Self-service technology for sales purposes in branch banking: The impact of personality and relationship on customer adoption", International Journal of Bank Marketing, Vol. 27 Iss: 7, pp.488 – 505. 259 Strauss, A. and J. Corbin, Basics of Qualitative Research: Grounded Theory, Procedures and Techniques. Newbury Park, Ca: Sage Publications, 1990. 260 Thulani, D, Tofara, C & Langton, R., “Adoption and Use of Internet Banking in Zimbabwe: An Exploratory Study,” Journal of Internet Banking and Commerce, vol. 14, no. 1. 2009.

101

Tan and Teo (2000)261 suggest that banks that fail to respond to Internet

banking are likely to lose customers and that the cost of offering Internet banking

services is often less than the cost of keeping branch banking.

Thamaraiselvan Natarajan, Senthil Arasu Balasubramanian, Sivagnanasundaram Manickavasagam (2010)262 In the retail banking context,

convergence of technologies has given birth to different channels of distribution

like Automatic Teller machines (ATM), internet banking, and mobile banking. This

enables the customer to avail the banking services at any time and any where.

These technological interfaces are known as self service technologies (SSTs).

Customers availing banking services through these SSTs get more benefits in

terms of time, cost and energy. Despite these benefits the customer trial,

adoption and repeat usage of SSTs vary among banking customers. Although

the kinds of service one can avail from these SST are similar, the patronage

among the SSTs differs. The SST channel choice could be attributed to various

factors viz., Nature of service to be availed or purpose, Perceived risk,

Requirements and Benefits. When it comes to predicting customer priority among

alternatives, Analytical hierarchy process (AHP) has been proved as an effective

technique. This paper explores the factors influencing customer choice of SSTs

by employing AHP technique.

Terry M.Wickre(1980)263, in his study to increase the customers

awareness about visa card and then master charge card issued by the bank

conducted a pre and post study before their various advertising strategies found

that by advertising customers were becoming more aware of credit card and how

it worked . Advertising had increasing the consumer’s ability to discriminate one

bank card from another and reduces confusion in the card holder’s minds. It also 261 Tan, M. and Teo, T. 2000. “Factors Influencing the Adoption of Internet Banking.” Journal of the Association for information systems, vol 1, iss.5, pp 1-42. 262 Thamaraiselvan Natarajan, Senthil Arasu Balasubramanian, Sivagnanasundaram Manickavasagam, Customer’s Choice amongst Self Service Technology (SST) Channels in Retail Banking: A Study Using Analytical Hierarchy Process (AHP), Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2. 263 Terry M. Wickre, Product differentiation in Bank Card marketing, Bank Marketing, 1980 Pg 14-17.

102

provides bankcard customers with convenient and beneficial plastic cards and

EFT services

Thornton and White (2001)264 compared several electronic distribution

channels available for banks in the USA and concluded that customer orientation

– towards convenience, service, technology, change, knowledge about

computing and the internet – affected the usage of different channels. Tooraj Sadeghi, Kambiz Heidazadeh Hanzaee,(2010)265, This paper

seeks to investigate the key factors underlying customer satisfaction with

electronic banking services in an Islamic country, Iran. The paper provides a

model of seven factors on the following dimensions: convenience, accessibility,

accuracy, security, usefulness, bank image, and web site design. Some of these

factors illustrate a significant statistical difference between males and females.

Tommi Laukkanen, (2007)266 The paper provides enhanced information

for business managers about both positive and negative customer value

perceptions in internet and mobile banking. By understanding how and what kind

of value different service channels provide for customers service providers are

better enabled to create actions to enhance internet and mobile banking

adoption. The contribution of the paper lies in achieving a more profound

understanding on consumer value perceptions to internet and mobile banking. It

expands the literature on electronic and mobile commerce and on electronic

banking especially

Tommi Laukkanen, (2006)267 The financial services sector has recently

undergone changes unprecedented in its history. Understanding customers'

264 Thornton, J. and White, L. (2001) ‘Customer orientations and usage of financial distribution channels’, The Journal of Service Marketing, Vol. 15, No. 3, pp.168–185. 265 Tooraj Sadeghi, Kambiz Heidazadeh Hanzaee, “Customer satisfaction factors(CSFs) with online banking services in an Islamic country:I.R.Iran”, Journal of Islamic Marketing, 2010, Vol 1, issue 3. 266 Tommi Laukkanen, (2007) "Internet vs mobile banking: comparing customer value perceptions", Business Process Management Journal, Vol. 13 Iss: 6, pp.788 – 797. 267 Tommi Laukkanen, Customer-perceived value of e-financial services: a means-end approach, International journal of Elecronic Finance, vol.1, no.1/2006, pg 5-17.

103

needs and values has become more important for financial institutions than ever

before, not only due to the changing environment but also because of changed

customer behaviour. This study explores the customer-perceived value of two e-

financial services, namely electronic fund transfer service and internet brokerage

service. This is done by using a means-end approach. It is a qualitative in-depth

interviewing method that is used for explaining how product or service attributes

facilitate consumers' achievement of desired end-states of being. The results

indicate how different electronic services create value for customers in service

consumption. The findings provide banking executives with a better

understanding of what kind of value customers perceive in the consumption of

different e-financial services. The results indicate similarities and differences in

the customer-perceived value between the services explored.

Tommi Laukkanen, (2007)268 "The purpose of the study is to increase the

understanding of the diverse retail channel preferences of online bank customers

by examining their channel attribute preferences in electronic bill paying. Two

different groups of online customers were examined: those who pay their bills

over the internet and those who, in addition, have experience of using a mobile

phone for this service. The study provides new insights for decision makers in the

electronic retail sector and especially in banking.

Tsung Lin Ching , Lai Jung-Yu, 2008269 Due to the burgeoning

development of electronic commerce (e-commerce), the broader applications of

emerging service-Internet baking (e-banking) services have been introduced and

provided by financial holding companies or banks at an accelerating rate in

recent years since they can provide efficient, reliable, securable, and convenient

financial services, such as online payment, deposit/loan, trading, and

clearing/settlement, via electronic channels (e-channels, e.g., Internet and

phone) for customers. E-banking services not only can create new competitive

268 Tommi Laukkanen, (2007) "Customer preferred channel attributes in multi-channel electronic banking", International Journal of Retail & Distribution Management, Vol. 35 Iss: 5, pp.393 – 4. 269 Tsung, Lin Ching and Lai, Jung-Yu, "What factors drive corporate customer satisfaction with e-banking services" (2008). PACIS 2008 Proceedings. Paper 84.

104

advantages, perhaps, but also can improve their relationships with customers for

banks. Obviously, e-banking can offer better services required by corporations

and individuals, it could be a strategic niche no matter for banks or their

customers. Conceivably, how to implement e-banking successfully is becoming a

critical management issue. Unfortunately, research pays scarce attentions on

what factors drive success of e-banking, particularly from corporate customers'

perspective. For the reason, this paper attempts to explore what factors affect

corporate customer satisfaction with e-banking (CCSEB) which is one surrogate

variable of success of e-banking services. Based on a survey of 178 respondents

collected from Taiwan companies, the results support that environmental,

organizational, and globalization factors will affect customer satisfaction with e-

banking significantly. Thomas Ogoro Ombati Stephen Onserio Nyamwange, 2010270

Importance and Performance of Various Factors Considered In the Electronic

Banking Services. Technology-based self-service has greatly changed the way

that service firms and consumers interact, and are raising a host of research and

practice issues relating to the delivery of e-service which has become

increasingly important not only in determining the success or failure of electronic

commerce, but also in providing consumers with a superior experience with

respect to the interactive flow of information. The purpose of this research paper

was to establish the relationship between technology and service quality in the

banking industry in Kenya. The research was carried through across-sectional

survey design which questioned respondents on e-banking services. The

population of study mainly constituted of customers of banks within the Central

Business District (CBD), Nairobi. The respondents of the study were customers

of banks using e-banking services (internet banking, mobile banking and ATM).

The sample in this study consisted of 120 respondents who are users of the e-

banking services. The data collected was analyzed by use of frequency,

percentage, means and correlation analysis. The findings revealed that, secure 270 Thomas Ogoro Ombati Stephen Onserio Nyamwange, Technology and service quality in the banking industry, African Journal of Business & Management (AJBUMA) Vol. 1 (2010), 16 pages.

105

services as the most important dimension, followed by convenient location of

ATM, efficiency (not need to wait), ability to set up accounts so that the customer

can perform transactions immediately, accuracy of records, user friendly, ease of

use, complaint satisfaction, accurate transactions and operation in 24 hours.

Unnithan and Swatman (2001)271 studied the drivers for change in the

evolution of the banking sector, and the move towards electronic banking by

focusing on two economies, Australia and India. The study found that Australia is

a country with internet-ready infrastructure as far as telecommunication, secure

protocols, PC penetration and consumers’ literacy are concerned. India, by

comparison, is overwhelmed by weak infrastructure, low PC penetration,

developing security protocols and consumer reluctance in rural sector. Although

many major banks have started offering i-banking services, the slow pace will

continue until the critical mass is achieved for PC, internet connections and

telephones. However, the upsurge of IT professionals with growing demands is

pressuring the government and bureaucracy in the country to support and

develop new initiatives for a faster spread of i-banking.

Uppal R.K.(2006),272 with stratified sampling of 500 bank customers,

explained the impact of computerization on the satisfaction of customers of all

bank groups and concluded that customer services are quite better in fully

computerized banks and further in e-banks in partial and non-computerized

banks. The study is only concerned with the urban sector of Punjab.

Uppal, R.K. & Kaur, R. (2007)273 studied the impact of Information

Technology on various parameters of bank performance and concluded that

Indian banking industry is fastly moving towards IT. The future of e-channels is

very bright. 271 Unnithan, C.R. and Swatman, P. (2001) E-banking Adaptation and Dot.Com Viability: A Comparison of Australian and Indian Experiences in the Banking Sector, Working Paper, School of Management Information Systems, Deakin University, No. 14. 272 Uppal R K (2006), Indian Banking and information technology, new century Publications, New Delhi. 273 Uppal R.K. & Kaur, R. (2007), “Indian Banking Moving Towards IT”, Journal of Commerce and Trade, Vol. 2, No. 1 (April), pp. 26-32.

106

Uppal, R.K.; Chawla, Rosy, (2009)274, This study highlights customer

perceptions regarding e-banking services. The study investigates the

perceptions of the bank customers regarding necessity of e-banking services,

quality of e-banking services, bank frauds, future of e-banking, preference of

bank customers regarding banks, comparative study of banking services in

various bank groups, preferences regarding use of e-channels and problems

faced by e-bank customers. The major finding of this study is that customers of

all bank groups are interested in e-banking services, but at the same time are

facing problems like, inadequate knowledge, poor network, lack of infrastructure,

unsuitable location, misuse of ATM cards and difficulty to open an account.

R.K.Uppal (2008)275 In the post-LPG (Liberalization, Privatization and

Globalization) era and Information Technology (IT) era, transformation in Indian

banks is taking place with different parameters and the contours of banking

services are dynamically altering the face of banking, as banks are stepping

towards e-banking from traditional banking. On the basis of five-point likert-type

scale, this paper empirically analyzes the quality of e-banking services in the

changing environment. With different statistical tools such as weighted average

method and ranking, the paper concludes that most of the customers of e-banks

are satisfied with the different e-channels and their services, but the lack of

awareness is a major obstacle in the spread of e-banking services. The paper

also suggests some measures to make e-banking services more effective in the

future. Banks have been forced to strike a balance between speed and security.

The enormous amount of data that are to be fed to the system call for robust and

very modern technologies and qualified professionals to man the system. An

attempt has been made in this paper to discuss the evolution of new generation

banking as the major trend in post liberation era of Indian banking and the

274 Uppal,R.K.;Chawla,Rosy,(2009), “E-Delivery Channel-based Banking Services: An Empirical Study”, ICFAI Journal of Management Research, July 2009, Vol.8,Issue 7, P 7-33. 275 R.K.Uppal (2008), Customer Perception of E-Banking Services of Indian Banks: Some Survey Evidence, The IUP Journal of Bank Management, vol.vii, issue I, February, 2008, pg.63-78 R K Uppal & Rimpi Kaur Indian Banking Moving Towards a Better Tomorrow volxxix. no 3 oct-dec 2008, Vinimaya archives.

107

relevance of traditional banks. The paper also attempts to bring out the issues

and challenges underlying the functioning of demand generation banks in the

contemporary banking scenario looking at the trends and developments initiated

R K Uppal & Rimpi Kaur, 2008276 IT has transformed the business

environment, the world over. It has a major impact in helping banking service and

their customers with the introduction of a number of e-channels like ATMs, EFTs,

Credit Cards, Internet-banking, Mobile-banking, Tele-banking, etc. It has bridged

the gaps in terms of the reach and coverage of systems, and enabled better

management of banking business. The present paper attempts to analyze the

impact of IT on the profitability of banking industry in India. The present paper

contains analysis of correlation and regression between profitability and different

e-channels to study the impact of IT on banks' profitability. It is concluded from

the data that IT has nominal impact on profitability of old private sector banks but

foreign banks show high impact, whereas public sector banks and new private

sector banks have average impact on their profitability. Overall, IT has very low

impact on profitability of Indian private sector banks as compared to public sector

banks and foreign banks proving 20 per cent more impact. The paper concludes

with some recommendations to improve IT related business in Indian banking

industry.

Uppal R.K. (2009)277 studied the customer service in Indian commercial

banks based on time factor. He inferred that there is a significant difference

among three sector of banks with regard to the time customers have to spent to

transact a business the e-banks are more efficient with regard to time factor.

R.K.Uppal (2010)278 In present day banking, total automation of banking

operations is an imperative need for all banks to attract more customers, provide

276 R K Uppal & Rimpi Kaur Indian Banking Moving Towards a Better Tomorrow volxxix. no 3 oct-dec 2008, Vinimaya archives 277 Uppal R.K., “Customer service in Indian commercial banks- an Empirical study”, Vol.1(1) Jan-June 2009, pp-127-141, Asia Pacific Journal of Social Science. 278 R.K.Uppal, “Emerging issues and strategies to enhance M-banking services, African Journal of Marketing Management, Vol.2 (2), pp 29-36, February 2010

108

efficient services, and survive in the emerging new competition, apart from the

profit motive which is the primary objective of the business. In order to achieve

these goals of business, various channels have been developed through

technology. ‘Mobile Banking’ is one of the best alternative channels available to

customers for quick, correct and efficient service at anytime and anywhere. The

present paper is devoted to explore the extent of Mobile banking in Indian

banking industry where cell phone users are increasing at unexpected rate. Time

period taken for study is 2000 - 2001 to 2006 - 2007 because this period is the

eye-witness of infant condition of IT and during the same period IT became

mature. Simple statistical tools like average, standard deviation, co-efficient of

variation are used to calculate the efficiency of various bank groups providing the

service of M-banking. On the basis of analysis, the paper concludes that the

private sector banks are on the top in providing the M-banking services to their

customers and have high profitability as compared to other bank groups under

study except foreign banks. The paper also highlights the benefits of M-banking

to customers as well as to bankers and suggests some strategies with their

possible solutions like to spread awareness regarding M-banking and to increase

its area and scope to enhance M-banking services in India, particularly in rural

and semi-urban areas.

Dr. R.K. Uppal (2011)279 The present paper exhibits the growth of

information technology in various bank groups. In our country in 2009, 79 percent

branches are under core banking. The maximum technology is taking place in

new generation private sector banks as well as foreign banks. 43.5 percent are

off site ATMs in our country. Public sector banks have more on site ATMs where

as new private sector banks and foreign banks have more off site ATMs. The

paper also suggests some strategies to enhance e delivery channels in banks

particularly in public sector banks.

279 Dr. R.K.Uppal, E-DELIVERY CHANNELS IN BANKS-A FRESH OUTLOOK International Refereed Research Journal Vol.– II, Issue1,January 2011, Pg 181-191

109

Unnithan and Swatman (2001)280 studied the drivers for change in the

evolution of the banking sector, and the move towards electronic banking by

focusing on two economies, Australia and India. The study found that Australia is

a country with internet-ready infrastructure as far as telecommunication, secure

protocols, PC penetration and consumers’ literacy are concerned. India, by

comparison, is overwhelmed by weak infrastructure, low PC penetration,

developing security protocols and consumer reluctance in rural sector. Although

many major banks have started offering i-banking services, the slow pace will

continue until the critical mass is achieved for PC, internet connections and

telephones. However, the upsurge of IT professionals with growing demands is

pressuring the government and bureaucracy in the country to support and

develop new initiatives for a faster spread of i-banking.

Vijayan and Shanmugam (2003)281 study the service quality of IB in

Malaysia and find that two of the top five Malaysian banks have a four star rating

out of a maximum five star rating. The remaining three top banks have a three

star rating based on a 40-item evaluation instrument.

Vijaya Ratnam N and Suguna Kumari.A 2005282, have stated that the

bankers have to evolve new approaches, new and innovative products to keep

pace with the ever changing and growing expectations of the customers. Banks

must upgrade their technology to achieve breakthrough in this area. Technology

upgradation is an important aspect to speedup the servicing in all spheres of

banking activity and to fulfill the customers need. Un precedence changes

resulting from internet revolution have built the confidence on the Indian banks

and they are now in a position to face the competition even from the international

banks. It is true that electronic banking has reduced operational costs

280 Unnithan, C.R. and Swatman, P. (2001) E-banking Adaptation and Dot.Com Viability: A Comparison of Australian and Indian Experiences in the Banking Sector, Working Paper, School of Management Information Systems, Deakin University, No. 14. 281 Vijayan, P., Shanmugam, B. (2003), Service quality evaluation of IB in Malaysia, Journal of IB and Commerce 8 (1). 282 Vijaya Ratnam N and Suguna Kumari “customer service in commercial banks in the new era” Professional banker-The Icfai university press. December 2005., pg-43.

110

substantially by cutting unnecessary duplication of work and also enables to

extend quality services to the customers

Verghese and Ganesh (2003)283 analyzed customer services in PSBs

and old private sector banks based on the responses of 776 customers in Kerala.

They found that there is no difference between the two types of the bank

branches.

Vinh Sum Chau, Liqing W.L.C. Ngai, (2010)284 “This paper aims to

investigate the perceptions, attitudes and behaviour of the youth market for

internet banking services (IBS). The authors find that young people (age 16-29)

have more positive attitudes and behavioural intentions towards using IBS than

other user-groups. It has also confirmed that there is a positive impact of IBS

quality on satisfaction and loyalty.

Vichudu Nui Polatoglu, Serap Ekin (2001)285 An exploratory study of

consumer acceptance of Internet banking (IB) services is conducted in a Turkish

bank. Examines both consumer-related factors that may affect the adoption of an

innovation or a product (such as complexity, perceived risk, and relative

advantage) as well as organizational factors such as marketing effort. The results

suggest that IB not only reduces operational cost to the bank, but also leads to

higher levels of customer satisfaction and retention. Accordingly, it is argued that

IB is strategically important to the banking sector in an emerging economy, such

as in Turkey

Wao-Ching Poon,2007286 The purpose of this paper is to explore the

determinants of users’ adoption momentum of e-banking in Malaysia. Results

283 Verghese M E and Ganesh C (2003), “Customer Services in Bank: An Empirical Study”, Vinimaya, Vol.XXXIV, No.2 (July-September), pp.15-26. 284 Vinh Sum Chau, Liqing W.L.C. Ngai, (2010) "The youth market for internet banking services: perceptions, attitude and behaviour", Journal of Services Marketing, Vol. 24 Iss: 1, pp.42 – 60 285 Vichuda Nui Polatoglu, Serap Ekin, (2001) "An empirical investigation of the Turkish consumers’ acceptance of Internet banking services", International Journal of Bank Marketing, Vol. 19 Iss: 4, pp.156 – 165. 286 Wao-Ching Poon,”Users’ adoption of e-banking services: the Malaysian perspective”, Journal of Business & Industrial Marketing, 2007, Vol.23, Issue 1,PP 59-69.

111

indicate that all elements for ten identified factors are significant with respect to

the users’ adoption of e-banking services. Privacy and security are the major

sources of satisfaction. Besides, the speed, product features availability, and

reasonable service fees and charges, as well as the bank’s operations

management factor are critical to the success of the e-banks

Walfried M. Lassar, Chris Manolis, Sharon S. Lassar, (2005)287. This

paper explores the relationships between consumer innovativeness, self-efficacy

on the internet, internet attitudes and online banking adoption, while controlling

for personal characteristics. It distinguishes between innate consumer

innovativeness, a generalized personality trait, and internet-domain-specific or

actualized innovativeness in order to explore consumer characteristics' impact

on adoption. While results confirm the positive relationship between internet

related innovativeness and online banking they also surprisingly show that

general innovativeness is negatively related to online banking. Williamson, Kirsty and Lichtenstein, Sharman, 2006.288 This paper

provides an understanding of how and why specific factors affect the consumer

decision whether or not to bank on the internet, in the Australian context. A

theoretical framework is provided that conceptualized and links consumer-

oriented issues influencing adoption of internet banking. The findings suggest

that convenience is the main motivator for consumers to bank on the internet,

while there is a range of other influential factors that may be modulated by banks.

The paper suggests that banks will be better able to manage consumer

experiences with moving to internet banking if they understand that such

experiences involve a process of adjustment and learning over time, and not

merely the adoption of new technology. Specifically, the findings suggest that

convenience is the main motivator for consumers to bank on the internet, while

287 Walfried M. Lassar, Chris Manolis, Sharon S. Lassar, (2005) "The relationship between consumer innovativeness, personal characteristics, and online banking adoption", International Journal of Bank Marketing, Vol. 23 Iss: 2, pp.176 – 199. 288 Williamson, Kirsty and Lichtenstein, Sharman, Understanding consumer adoption of internet banking: An interpretive study in the Australian Banking context, Journal of Electronic Commerce Research, January 2006].

112

there is a range of other influential factors that may be modulated by banks. The

findings also highlight increasing risk acceptance by consumers in regard to

internet-based services and the growing importance of offering deep levels of

consumer support for such services. Gender differences are also highlighted.

Wendy W.N. Wan, Chung-Leung Luk, Cheris W.C. Chow, (2005)289

The study sought to investigate factors that influenced Hong Kong bank

customers’ adoption of four major banking channels, i.e. branch banking, ATM,

telephone banking, and internet banking. Specifically, it aimed to focus on the

influences of demographic variables and psychological beliefs about the positive

attributes possessed by the channels. Overall, ATM was the most frequently

adopted channel, followed by internet banking and branch banking, and

telephone banking was the least frequently adopted channel. Psychological

beliefs about the extent to which a channel possessed certain positive attributes

were more predictive of adoptions of ATM and internet banking than adoptions of

branch banking and telephone banking. Demographic backgrounds were strongly

associated with adoption of all banking channels except ATM. A major research

implication is that the theory of reasoned action is less applicable when a

behavior is habitual, such as the adoptions of branch banking and telephone

banking.

Wise and Ali (2009)290 argued that many banks in Bangladesh want to

invest in ATMs to reduce branch cost since customers prefer to use them instead

of a branch to transact business. The financial impact of ATMs is a marginal

increase in fee income substantially offset by the cost of significant increases in

the number of customer transactions. The value proposition however, is a

significant increase in the intangible item customer satisfaction. The increase

translates into improved customer loyalty that in result in higher customer

289 Wendy W.N. Wan, Chung-Leung Luk, Cheris W.C. Chow, (2005) "Customers' adoption of banking channels in Hong Kong", International Journal of Bank Marketing, Vol. 23 Iss: 3, pp.255 – 272. 290 Wise, Victoria and Ali, Muhammad Mahboob, 2009. "Customer Relationship Management in Banks with special reference to Bangladesh", Southwest Review of International Business Research, Vol.19, No.1, March 2009.

113

retention and growing organization value. Internet banking is a lower-cost

delivery channel and a way to increase sales. Internet banking services lies in

the increased retention of highly valued customer segments. This paper

describes a case study about the major issues and challenges in the

development of the electronic banking (e-banking) industry of a relatively

underdeveloped nation. This research shows that even in many less developed

nations, the application of e-banking can help their local banks reduce operating

costs and provide a better and fast service to their customers. The research

objectives are to investigate the current trends and developments in e-banking

and provide managerial insights for the banking industry in those

underdeveloped nations. The collected data are examined through statistical

analysis tools. Managerial implications are discussed with suggestions for future

research.

Wu et al. (2004)291 evaluate the web site usability of IB in Taiwan. Their

study indicates that there is a gap between the user expectation and actual

usability of Web sites. Moreover, the results show that old banks are more

experienced than new banks and private banks are more competitive than

government-owned banks to survive in a competing market.

Yang et al. (2004)292 argue that customers assess the online product

portfolio as they prefer firms which offer a substantial selection of e-products to

satisfy their diverse needs.p.1149-1174.

Yap, Kenneth. B, Wong, David H, Loh, Claire, Bak, Randall, (2010)293

This study that examines how traditional service quality and a bank’s size and

reputation influences trust in e-banking. The purpose of this paper is to examine

291 Wu C.-S., Cheng F.-F., Lin H.-H. (2004), Web site Usability Evaluation of IB in Taiwan, Journal of IB and Commerce 9 (1). 292 Yang, Z., Jun, M. and Peterson, R. T. (2004), “Measuring customer perceived online service quality: scale development and managerial implications”, International Journal of Operations and Production Management, Vol. 24(11). 293 Yap,Kenneth.B,Wong, David H, Loh, Claire,Bak, Randall, “Offline and online banking-Where to draw the line when building trust in e-banking?”, International journal of Bank Marketing, 2010, Vol.28, Issue 1,P 27-46.

114

the role of situation normality cues (online attributes of the e-banking web site)

and structural assurance cues (size and reputation of the bank, and quality of

traditional service at the branch) in a consumer’s evaluation of the

trustworthiness of e-banking and subsequent adoption behaviour.

Ya-Yueh Shih, Kwoting Fang, (2004)294 This paper explores the

relationships between consumer innovativeness, self-efficacy on the internet,

internet attitudes and online banking adoption, while controlling for personal

characteristics. The study integrates the technology acceptance model and

adoption of innovation framework to develop predictions of online banking

acceptance. It distinguishes between innate consumer innovativeness, a

generalized personality trait, and internet-domain-specific or actualized

innovativeness in order to explore consumer characteristics’ impact on adoption.

The findings show that general innovativeness is negatively related to online

banking.

Yibin, MU (2003)295 indicated the improvement of the system

infrastructure. According to him, improvements of the system infrastructure are

to: a) improve the system for credit cards and other forms of electronic

transaction; b) build-up transaction reporting services; c) improve payment

system; and d) improve telecommunications infrastructure. Once the

infrastructure is placed properly, then banks can push customers to use new

delivery channels by giving guarantee on security.

Yong J. John, G.E. Gorman, (2002)296 "This paper provides an insight

into how South Koreans access the Internet and use Internet services such as

banking and commerce. The paper shows overall Internet use in relation to users

and their behaviour, and presents data on Internet services such in banking and

294 Ya-Yueh Shih, Kwoting Fang, (2004) "The use of a decomposed theory of planned behavior to study Internet banking in Taiwan", Internet Research, Vol. 14 Iss: 3, pp.213 – 223. 295 Yibin, MU (November 2003), "E-Banking: Status, Trends, Challenges and Policy Issues”, Financial Economist, The World Bank. 296 Yong J. John, G.E. Gorman, (2002) "Internet use in South Korea", Online Information Review, Vol. 26 Iss: 5, pp.335 – 344.

115

e-commerce. Data are taken from reports issued by the Korean Network

Information Centre in 2002

Yi-Shun Wang, Yu-Min Wang, Hsin-Hui Lin, Tzung-I Tang, (2003)297

The explosion of Internet usage and the huge funding initiatives in electronic

banking have drawn the attention of researchers towards Internet banking. In the

past, the conventional focus of Internet banking research has been on

technological development, but this is now shifting to user-focused research.

Although millions of dollars have been spent on building Internet banking

systems, reports have shown that potential users may not use the systems in

spite of their availability. This points out the need for research to identify the

factors that determine acceptance of Internet banking by the users. These beliefs

may however not fully explain the user's behavior toward newly emerging IT,

such as Internet banking. Using the technology acceptance model (TAM) as a

theoretical framework, this study introduces “perceived credibility” as a new

factor that reflects the user's security and privacy concerns in the acceptance of

Internet banking. It also examines the effect of computer self-efficacy on the

intention to use Internet banking.. It also demonstrates the significant effect of

computer self-efficacy on behavioral intention through perceived ease of use,

perceived usefulness, and perceived credibility

Zhaohua Deng. Yaobin Lu, Shimin Deng, Jinlong Zhang, (2010)298 The

article examines the factors that influence the adoption of mobile banking through

technology acceptance model (TAM) in China. The study shows that consumer

intention to use mobile banking is predicted using TAM. The study emphasizes

that user’s attitude toward mobile banking is influenced by trust-based construct

and perceived credibility.

297 Yi-Shun Wang, Yu-Min Wang, Hsin-Hui Lin, Tzung-I Tang, (2003) "Determinants of user acceptance of Internet banking: an empirical study", International Journal of Service Industry Management, Vol. 14 Iss: 5, pp.501 – 519. 298 Zhaohua Deng. Yaobin Lu, Shimin Deng, Jinlong Zhang,”Exploring user adoption of mobile banking: an empirical study in China, International journal of information technology & management, 2010, Vol.9, Issue 3, pp289-301.

116

Zeithaml, V.A., Parasuraman, A. and Malhotra, A. (2001)299. Although

research has shown that technology has many advantages, it can also make

service delivery more complex and affect service quality. They contend that

many customers cannot clearly determine their expectations of internet services.

Zeithaml (2000)300 contends that despite no direct interaction between the

customer and service provider, each service element provided in the electronic

environment represents an opportunity for the organization to reinforce its level of

quality to customers.

Zeithaml (2002)301 argues that organizations should focus on all the

encounters that occur prior to, during and after internet transactions. He further

argues that organizations should focus on all the encounters that occur prior to,

during and after internet transactions. If organizations focus on developing

efficient internet services, it can become a prevailing factor to increase the

overall service offerings It may contribute to maintaining and enhancing the

image and reputation of the firm which will in turn lead to acquire the trust of

customers.

Zeithaml. V.A, Berry. L.L and Parasuraman A. (1996)302, in order to

enhance a bank’s reputation, improve its customer retention, attract new

customers, and increase its financial performance and profitability, banks should

provide quality service to their customers. They use different criteria to evaluate

the quality of service they receive from internet banking. These criteria are likely

to differ in their importance, usually some being more important than others

299 Zeithaml, V.A., Parasuraman, A. and Malhotra, A. (2001), “A conceptual framework for understanding e-service quality: implication for future research and managerial practice”, MSI Monograph, December, pp 1-15. 300 Zeithaml, V.A. (2000), “Service Quality, profitability and economic worth of customers: what we know and what we need to learn”, Academy of Marketing Journal, Winter. 301 Zeithaml, V.A (2002), “Service-excellence in electronic channels”, Managing Service Quality, Vol. 12(3), p. 135-8. 302 Zeithaml, V.A., Berry, L.L. and Parasuraman, A. (1996), “The behavioral consequences of service quality”, Journal of Marketing, Vol. 60(2), p. 31-46.

117

Ziqi Liao and Wing-Keung Wong (2007)303 This paper empirically

explores the major considerations associated with Internet-enabled e-banking

systems and systematically measures the determinants of customer interactions

with e-banking services. The results suggest that perceived usefulness, ease of

use, security, convenience and responsiveness to service requests significantly

explain the variation in customer interactions. Exploratory factor analysis and

reliability test indicate that these constructs are relevant and reliable.

Confirmatory factor analysis confirms that they possess significant convergent

and discriminatory validities. Both perceived usefulness and perceived ease of

use have significant impact on customer interactions with Internet e-banking

services. Perceived security, responsiveness and convenience also represent

the primary avenues influencing customer interactions. In particular, stringent

security control is critical to Internet e-banking operations. Furthermore, prompt

reactions to the service requests from customers should encourage them to use

Internet e-banking services. The findings have managerial implications for

enhancing extant Internet e-banking operations and developing viable e-banking

systems and services.

Ziqi Liao and Michael Tow Cheung (2002)304 Consumer attitudes toward

the usefulness of and willingness to use Internet e-retail banking were identified

and measured. Our survey was undertaken in Singapore, because its geography

and well-developed infrastructure implied similar and small physical- and tele-

communication costs, thereby highlighting the differences between traditional

and Internet-based retail banking upon the latter’s introduction. The data showed

that expectations of accuracy, security, network speed, user-friendliness, user

involvement and convenience were the most important quality attributes

underlying perceived usefulness. Regression discovered that willingness to use

depended significantly on the first five factors, allowing the interdependencies or

marginal rates of substitution between them to be estimated. Our results draw 303 Ziqi Liao and Wing-Keung Wong The Determinants of Customer Interactions with Internet-enabled e-Banking Services, RMI Working Paper No. 07/19, 2007. 304 Ziqi Liao and Michael Tow Cheung, Internet-based e-banking and consumer attitudes: an empirical study Information & Management, Volume 39, Issue 4, January 2002, Pages 283-295.

118

attention to demand-side changes in explaining the recent slowdown in Internet

e-retail banking, and may also be useful for development planning and

marketing.

The next chapter deals with the profile of the study area, study unit and

the progress of e-banking in India.